Page 7 - AsianOil Week 40 2022

AsianOil OCEANIA AsianOil

EIG vehicle snaps up stakes in Australian

LNG projects for $2.15bn

INVESTMENT MIDOCEAN Energy, backed by US private and sales,” it added.
equity group EIG, has struck a deal to acquire EIG added that the acquisition represented
The purchases give Tokyo Gas’ interests in four integrated Australian the start of MidOcean’s strategy to build a
MidStream a portfolio of LNG projects for $2.15bn in cash, EIG said in a high-quality, diversified, global pure play inte-
1mn tpy of LNG supply. statement on October 7. grated LNG company and “leverages EIG’s
The projects – Gorgon LNG, Ichthys LNG, extensive investing experience in the global LNG
Pluto LNG and Queensland Curtis LNG – are sector, underpinned by several billions dollars of
situated on Australia’s east and west coasts and commitments to multiple LNG projects over the
are major suppliers of LNG to Asian markets. past 20 years.” This includes EIG’s recent pur-
They have “a diverse set of long-dated take or chase of a controlling stake in GNL Quintero,
pay contracts with investment-grade counter- the largest LNG regasification terminal in Chile.
parties and to Australia’s domestic gas markets,” MidOcean Energy was launched only this
EIG said. summer, with EIG hiring LNG veteran De la Rey
The shares that MidOcean is set to acquire Venter, formerly with Shell, as its CEO in June.
give the company a portfolio of 1mn tonnes per “We see a number of opportunities to expand
year of LNHG supply and “production that is further MidOcean’s position in supplying LNG
underpinned by long-life reserves and a globally markets around the world and look forward to
competitive cost structure,” EIG SAID. working with our new partners and customers,”
“The portfolio benefits from experienced Venter said in a statement.
operators, including Chevron, Inpex, Woodside The deal is set to be closed in the first half of
and Shell, and spans the LNG value chain from 2023, subject to customary closing conditions,
upstream operations to midstream, liquefaction including approval by Australian regulators. ™

EAST ASIA

Russia seizes Sakhalin-1

oil and gas project

POLICY RUSSIAN President Vladimir Putin on Octo- completely, making it doubtful that the US major
ber 7 ordered the seizure of the ExxonMo- will apply to retain its stake in Sakhalin-1. Japa-
Russia took similar bil-led Sakhalin-1 oil project, signing a decree nese investors have been more reluctant to give
action at the Sakhalin-2 that establishes a new operator to manage the up their energy assets in Russia. At Sakhalin-2,
project. development. Japan’s Mitsui and Mitsubishi opted to retain
It follows a similar presidential decree intro- their shares in the Gazprom-led project, citing
duced at the end of June, under which Russia concerns about the impact their exit would have
transferred all rights and obligations of the con- on Japanese energy security. Japan is the big-
sortium managing the Sakhalin-2 project to a gest buyer of LNG from the terminal. Russia’s
Russian entity. Both decrees give the Russian Novatek is reportedly interested in buying the
government authority to decide whether for- share of the other partner at Sakhalin-1, Shell.
eign shareholders can retain their interests in This said, Japan already stopped buying crude
the projects. from Russia in June, and so they may be more
ExxonMobil operates Sakhalin-1 with a 30% willing to withdraw from Sakhalin-1.
interest, while Russia’s Rosneft, India’s ONGC As for India’s ONGC Videsh, it has expressed
Videsh and Japan’s SODECO serve as partners. no desire in leaving Russia in the wake of Mos-
Prior to Russia’s invasion of Ukraine, the project, cow’s invasion of Ukraine. In fact, the company
consisting of three offshore fields, was producing and other Indian oil refiners have been ramping
around 220,000 barrels per day of oil. But it has up Russian oil purchases, taking advantage of the
since fallen to only 10,000 bpd. steep discount that the supplies currently trade
ExxonMobil announced its intention in at as a result of sanctions and their rejection by
March to withdraw from the Russian oil industry Western buyers. ™

Week 40 10•October•2022 www. NEWSBASE .com P7