Exxon denies deal to sell Sakhalin-1 gas to Gazprom

MOSCOW Wed May 6, 2009 4:49pm IST

The Exxon corporate logo and the Mobil corporate logo were displayed side by side at a news conference in New York in this December 1 file photo. REUTERS/HO Old

The Exxon corporate logo and the Mobil corporate logo were displayed side by side at a news conference in New York in this December 1 file photo.

Credit: Reuters/HO Old

Related Topics

Kishore Pandey, 82, lies on a bed as his daughter, Usha Tiwari, holds him and a priest stands by them (L) at Mukti Bhavan (Salvation House) in Varanasi, in the northern Indian state of Uttar Pradesh, June 19, 2014. REUTERS/Danish Siddiqui

Waiting to die at Salvation House

The city of Varanasi is Hinduism's holiest city and many Hindus believe that dying there and having their remains scattered in the Ganges allows their soul to escape a cycle of death and rebirth.  Slideshow 

MOSCOW (Reuters) - U.S. energy giant Exxon Mobil said on Wednesday it has not yet agreed to sell gas from its Sakhalin-1 project to Russia's Gazprom, denying earlier media reports about the deal.

Japanese daily Nikkei reported earlier this week that Sakhalin-1 would sell 20 percent of its gas to Gazprom, citing unnamed sources. The price of sales -- the main sticking point in the talks -- had yet to be agreed, it said.

"Exxon Mobil has confirmed that Sakhalin-1 consortium is still in discussions with Gazprom on potential sales of gas from Sakhalin-1 project, but no sales and purchase agreement has been signed yet," Exxon Mobil spokeswoman Dilyara Sydykova said.

Exxon Mobil operates Sakhalin-1, on the Russian Pacific coast island of the same name, in cooperation with Russian state oil firm Rosneft, Japan's Itochu, Marubeni and India's ONGC.

Gazprom has long said it needs the gas produced at Sakahlin-1 to cover domestic needs, while Exxon says it is looking for the best price and has eyed major importer China for some time.

The project has been producing oil for several years and reached peak production of 11.2 million tonnes in 2007.

It has been producing gas since 2005 and shipping small volumes to continental Russia. It has signed a deal to supply China with 8 billion cubic metres (bcm) of gas a year and hopes to start the supplies next decade.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

India-Nepal Ties

REUTERS SHOWCASE

Tackling Food Prices

Tackling Food Prices

India to free up extra 10 million tonne wheat in open market  Full Article 

Facebook Results

Facebook Results

Facebook beats Wall Street targets, stock hits record high  Full Article 

GM Recall

GM Recall

GM recalls 717,950 vehicles in U.S., not for ignition switches  Full Article 

Hyundai Motor Results

Hyundai Motor Results

Hyundai Motor Q2 profit slips as firmer won, U.S. discounts hurt  Full Article 

Nokia Results

Nokia Results

Nokia raises networks outlook after Q2 profit beats estimates  Full Article 

Factory Sector

Factory Sector

China July HSBC flash PMI at 18-month high of 52.0   Full Article 

Breakingviews

Breakingviews

Apple winds up earnings hope for new gadgets  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage