Sakhalin Energy appeals Supreme Court’s refusal to review company’s dispute with Rosneft
MOSCOW, January 15 (RAPSI) – Sakhalin Energy, controlled by Gazprom, filed an appeal against the ruling of Supreme Court of Russia not to review dispute between the company and Rosneft over the Sakhalin-II pipeline, RIA Novosti reported on Friday.
The appeal has not been reviewed yet.
In December 2015 the Supreme Court dismissed appeals by Gazprom and Sakhalin Energy against the ruling of the Far East District Commercial Court. In these appeals companies asked the special commission of the Supreme Court to review the dispute with Rosneft.
Sakhalin Energy is the operator of the Sakhalin-II oil and gas project in the Russian Far East.
Rosneft wants to get access to the pipeline to reduce spending on the liquefied natural gas (LNG) project, which it is implementing jointly with ExxonMobil. Gazprom turned down the request, saying that it planned to expand its own LNG plant within the Sakhalin-II project.
Rosneft said it needed access to the pipe to transport up to 8 billion cubic meters of gas annually from its fields in northern Sakhalin to an LNG plant it planned to build jointly with its partners on the south of the island. Sakhalin Energy rejected the request on the grounds that it lacked the extra capacity.
In February, the Commercial Court of the Sakhalin region dismissed Rosneft’s lawsuit against Sakhalin Energy. However, this decision was overturned in September by the Far East District Commercial Court. The court said that while Sakhalin Energy is not obliged to transport 8 billion cubic meters of gas, it should provide Rosneft an access to its pipeline that would allow transporting of 2 billion.
Sakhalin-II is one of the world's largest integrated oil and gas projects. It includes the Piltun-Astokhskoye oilfield and the Lunskoye natural gas field off Sakhalin Island in the Sea of Okhotsk and onshore infrastructure.