Russia's Energy Ministry plans to approve the budget of the Exxon Mobil Corp. (XOM)-led Sakhalin-1 project, a consortium operating oil and gas fields on Russia's Pacific coast, within two weeks, a ministry spokeswoman said Friday.
A working group under the ministry said it will accelerate work on approving documents and approve amendments to last year's spending plan on Sakhalin-1's Odoptu field.
Under the production sharing agreement, or SPA, by which Sakhalin-1 operates, an authorized state body must approve the budget and working plans, but has so far refused to sign off this year's budget as well as additional costs for 2008.
In February, Exxon Mobil said it was forced to suspend some work a future phases of the project, as the consortium didn't want to risk spending funds it would then be unable to recover.
The ministry spokeswoman said the budget approval had been delayed because the consortium had failed to provide the required documents on time.
The Authorized State Body will review the programs in April.
In 2007, Royal Dutch Shell (RDSA) had to give up control of the neighboring Sakhalin-2 project to state-controlled gas firm OAO Gazprom (GAZP.RS), after it came under pressure from the Russian authorities.
Sakhalin-1, in which Exxon Mobil and Japan's Sodeco hold 30% stakes and Russia's OAO Rosneft (ROSN.RS) and India's ONGC Videsh Ltd. each hold 20% stakes, comprises three offshore fields - Chayvo, Odoptu and Arkutun-Dagi.