Sakhalin Energy Investment Company Ltd. (Sakhalin Energy), a company jointly owned by OAO Gazprom (Gazprom), Royal
Dutch Shell plc (Shell), Mitsui & Co., Ltd. (Mitsui) and Mitsubishi Corporation (Mitsubishi) with Mitsui holding a
12.5% stake, signed today a US$5.3 billion project finance contract with the Japan Bank for International
Cooperation (JBIC) and a consortium of international banks.
JBIC is planned to provide US$3.7 billion whilst the consortium of international banks will contribute an additional
US$1.6 billion to Sakhalin Energy. The funds will finance the construction, testing and commissioning of Sakhalin
II, Phase 2, which will soon start delivering liquefied natural gas (LNG) to customers in Japan, Korea and the North
American west coast.
The four shareholders of Sakhalin Energy, including Mitsui, signed a sponsor guarantee contract providing guarantees
for the loan until the completion of the project.
Mitsui, as a shareholder of Sakhalin Energy, regards the signing of this project finance contract as a significant
milestone of the Sakhalin II project, and will continue to support the project towards the commencement of LNG
[Note for Editors]
Sakhalin II project
Sakhalin is a new world-class oil and gas province, with estimated resources of some 45 billion barrels oil
equivalent (boe). Sakhalin II is the largest integrated oil and gas project in the world, with total resources of
some 4 billion boe.
Sakhalin Energy Investment Company Ltd is the investor and operator of the Sakhalin II Project. Shareholders of the
company are OAO "Gazprom" (50%+1 share), Royal Dutch Shell plc (27.5%-1 share), Mitsui & Co., Ltd.
Mitsubishi Corporation (10%). Sakhalin II today has production capacity of 90,000 boe per day of oil during the
production season. The subsequent phase of the development will take the production capacity of oil to 150,000 boe
per day, and at the same time enable 9.6 million tones per year of LNG production. Sakhalin Energy is aiming to
complete the main construction and commence LNG Plant start-up before end of 2008. LNG export is expected to start
shortly thereafter. First year round oil production and export is currently planned to start in the second half of
The second phase of the project is over 90% complete. The planned LNG production has been sold under contract to
customers across the Asia-Pacific region.
Sakhalin II includes the following elements:
- Offshore production facilities including the Molikpaq platform (PA-A), the new PA-B and Lun-A platforms and
some 300 km of offshore pipelines;
- An onshore processing facility to take the gas and crude oil from both fields;
- Two 800 km of onshore oil and gas pipelines to the south of the island;
- An oil export facility capable of year-round operation;
- The first LNG plant and associated export facilities built in Russia;
- Island infrastructure upgrades, such as roads, bridges, rail, port, airport, and medical facility upgrades.
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.