Seeking Alpha
( followers)  

Reuters reports two of Japan's largest trading firms, Mitsubishi and Mitsui, are looking to cash in some of their combined 45% stake in the Sakhalin-2 natural gas project, according to sources close to the talks. The total project is reportedly valued at $22b. Concurrently, Royal Dutch Shell and both Mitsubishi and Mitsui are in negotiations with Gazprom to cede control of the project to the latter. It appears the Japanese trading companies are not seeking an exchange of shares for assets in projects in Russia. However, a separate source says Japan still expects to receive gas shipments from Russia. The Sakhalin-2 project has been surrounded by controversy due, among other things, to rising costs.
• Sources: Reuters
• Related commentary: Exxon's Sakhalin-1 Reaches Preliminary Deal with China Oil Giant, Royal Dutch Shell Resolves Environmental Snag at Sakhalin-2, Gazprom Ends Talks With West, Highlighting Rift
• Potentially impacted stocks and ETFs: Mitsui & Co (OTCPK:MITSY), Mitsubishi (Tokyo: 8058), Royal Dutch Shell (NYSE:RDS.A), Exxon (NYSE:XOM)

Seeking Alpha's news summaries are combined into a pre-market briefing called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only a few seconds to sign up.

Source: Japan to Partially Cash Out of Sakhalin-2