Japanese Minister of Economy, Trade, and Industry Koichi Hagiuda said on Saturday that Japan has informed the US of its intention to keep its stake in the Russian Sakhalin-2 oil and gas project.

After 2+2 economic talks in Washington, Hagiuda added: "There were calls for us to leave [the Sakhalin-2 project], but the withdrawal would mean that we cede our share to third countries and Russia makes a huge profit. We have explained to the US side that we want to keep the status quo, and I think we have reached an understanding."

Japan, represented by Hagiuda and Foreign Minister Hayashi Yoshimasa, and the United States, represented by Secretary of State Antony Blinken and Secretary of Commerce Gina Raimondo, held 2+2 format talks in Washington on Friday. The parties discussed energy security, including liquified natural gas supplies (LNG).

In early July, Russian President Vladimir Putin issued a decree for Russia to establish a new project operator to take over Sakhalin-2 from Sakhalin Energy Investment Co.

Gazprom of Russia will retain a 50 percent plus one shareholding. Shell has already pledged to sell its 27.5 percent interest, while Mitsui and Mitsubishi are said to be holding 12.5 percent and 10 percent stakes, respectively.

The infrastructure consists of three offshore platforms, an integrated onshore processing complex, an oil shipping terminal, and a 9.6 million tonnes per year LNG plant.

The project provides Japan with 10 percent of its total LNG imports. Sakhalin-2 contributes to around 9 percent of Japan's LNG imports.

Sakhalin 2 project

The Sakhalin 2 project is exploring two reserves - Piltun-Astokhskoye and Lunskoye - in the Okhotsk Sea. The infrastructure includes three offshore facilities, an onshore processing facility, an oil shipping terminal, and an LNG plant.

The Sakhalin Energy company manages the project. Fifty percent plus one share of Sakhalin Energy belongs to the Russian company Gazprom, 27.5 percent minus 1 share — to Shell, 12.5 percent to Mitsui & Co. Ltd, and 10 percent to Mitsubishi Corporation.