Sakhalinmorneftegaz-Shelf JSC, a Rosneft subsidiary, has been granted the right to manage the decommissioning fund for the Sakhalin-1 project. The corresponding decree of the President of Russia was published on October 12. The company is required to submit quarterly reports on the management of the funds to the Russian Ministry of Energy and Ministry of Finance.

The fund is intended to finance decommissioning work after the project facilities cease operations. Funds for dismantling infrastructure and decommissioning field facilities are accumulated in advance under the production sharing agreement (PSA).

Contributions to the fund are also linked to the formalization of foreign participants’ stakes in the project’s Russian operator. Since August 2025, one of the conditions has been the transfer to the operator’s decommissioning account of an amount equal to the funds previously accumulated by the relevant participant in the PSA decommissioning fund.

Since October 2022, the project has been operated by Sakhalin-1 LLC, which is managed by Sakhalinmorneftegaz-Shelf JSC. The project includes the Chayvo, Odoptu and Arkutun-Dagi fields on the northeastern shelf of Sakhalin Island.