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Russia has approved the participation of Japan’s Sakhalin Oil and Gas Development (SODECO) and India’s ONGC Videsh (OVL) in the Sakhalin-1 oil and gas project, reported Interfax.

According to the corresponding instructions issued by Russian Prime Minister Mikhail Mishustin and reviewed by the news agency, SODECO will own a 30% stake in the Russian Sakhalin 1 LLC, which is the new operator of the project, according to the production sharing agreement (PSA).

India’s Oil and Natural Gas Corporation (ONGC) overseas arm ONGC Videsh will hold a 20% stake in the project under the terms of the PSA.

Created in October 2022 and registered in Yuzhno-Sakhalinsk, Sakhalin-1 LLC is managed by Russian firm Rosneft ‘s unit Sakhalinmorneftegaz-Shelf , with an 11.5% stake while JSC RN-Astra owns an 8.5% interest.

The remaining 80% stake was held by foreign participants, of which 30% was owned by Exxon Mobil, 30% by SODECO, and 20% by ONGC. These firms had a month to confirm their participation in the new project operator.

The Sakhalin-1 project comprises three oil and gas fields off the East Coast of Sakhalin Island in the Sea of Okhotsk. These include Odoptu, Chayvo, and Arkutun-Dagi, all located on the northeastern shelf.

As per the estimates, the project holds reserves of 307 million tonnes of oil and 485 billion cubic metres of natural gas. It also has an oil production capacity of 11.3 million tonnes per annum.