Reuters is reporting that Rosneft (Russia) and Exxon Mobil (USA) are planning to build a LNG production project in partnership with Japan’s SODECO and India’s ONGC Videsh.
All four companies are partners in the Sakhalin-1 fields from which the requisite gas for the facility will be drawn, however Rosneft and Exxon had previously planned to build the facility without the other partners.
The benefits of the broader partnership include not only spreading the cost of the project, which has been estimated to be US$15 billion, but it may also help with the mitigation of sanctions risk.
While sanctions cannot be levied specifically against LNG production, Russian companies currently have restricted access to financial markets. This is due to international sanctions in place against the Russian Federation.