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Sakhalin Energy says bad weather shut, damaged some key faciliies

Sakhalin Energy Investment Co Ltd, the developer of the 20 bln usd Sakhalin-2 gas project in Russia, said operation of some of the key facilities was suspended due to bad weather.

The Vityaz offshore facility in the north-east of the island and the Okha floating vessel were shut due to 'severe weather conditions,' Sakhalin Energy said in a statement.

'While preparing to re-connect the Okha over this weekend, it became apparent that the Single Anchor Leg Mooring (SALM) buoy at the Vityaz complex has suffered damage,' it said, adding the extent of the damage is still being checked.

The damage to the SALM resulted in a 'small release of oil' into the sea, it said.

A company spokesman in Moscow told Thomson Financial News the oil spill involved about 10 litres.

Repair work will proceed, though the operations will not be restored until spring, he added.

He explained that 'we're supposed to shut down (the facilities) anyway in December', when the ice starts to build up, with operations resuming again in May.

Gazprom owns a 50 pct plus one share stake in Sakhalin Energy, while Royal Dutch Shell PLC owns 27.5 pct. Japan's Mitsui & Co Ltd and Mitsubishi Corp hold the rest.

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