Japan intends to reduce energy dependence on Russia; not seeking to withdraw from Sakhalin projects

MOSCOW. Oct 27 (Interfax) - The Japanese government plans to reduce the country's dependence on Russian energy sources gradually, including coal and oil, Japan's Foreign Ministry said in its annual report on foreign policy and activities.

"However, the Sakhalin-1 and Sakhalin-2 oil and gas development projects in Russia are important for Japan's energy security in terms of ensuring stable supplies over the medium and long term, and the government intends to maintain its interests in these projects," according to the document.

Sakhalin-1 includes three oil and gas fields: Chaivo, Odoptu and Arkutun-Dagi off the northeast coast of Sakhalin Island. Their combined reserves are estimated at 307 million tonnes of oil and 485 billion cubic meters of natural gas. Production at Sakhalin-1 peaked at 12.96 million tonnes per year in 2019, after which it started to decline, dropping to 12.44 million tonnes in 2020 and 11.3 million tonnes in 2021. Exact production figures at the project have not been published for 2022-2025.

Sakhalin-1 LLC has been the operator of the eponymous PSA project since October 2022, when the Russian president signed a decree transferring the corresponding powers from Exxon Neftegas Ltd. The Russian LLC is managed by JSC Sakhalinmorneftegaz-Shelf. This subsidiary of Rosneft is entitled to 11.5% in the new operator (proportional to its share in the PSA), and another 8.5% is managed by JSC RN-Astra. Japan's SODECO (30%) and India's ONGC (20%) gave their consent to receive proportional shares in the new operator. In turn, Exxon Mobil (30%) announced the termination of its participation in the PSA project and its complete exit from Russia. ONGC restored its stake in the project on December 5, 2025.

Sakhalin-2 involves developing the Piltun-Astokhskoye and Lunskoye fields on the Sakhalin offshore shelf. The project's LNG plant, located in Prigorodnoye in the south of Sakhalin, was commissioned in February 2009 and reached full design capacity of 9.6 million tonnes of LNG per year in 2010. Subsequent operational optimization programs enabled an increase in output, with production reaching 10.3 million tonnes in 2025. Sakhalin Energia LLC, which Gazprom and Japan's Mitsui and Mitsubishi co-own, operates the project.