Commodity Trade

Running Head: COMMODITY TRADE
Commodity Trade
Name of the Student
Name of the University
Author Note

1COMMODITY TRADE
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
Overview of the Company.......................................................................................................3
About the Sakhalin Project -1..................................................................................................3
About the Sakhalin Project -2..................................................................................................4
Exporters and Importers..........................................................................................................7
Recommendations............................................................................................................................8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................11

2COMMODITY TRADE
Introduction
There are so many opportunities in the global market of commodities. The commodity
market is a financial market which operates in the primary economic sector or with the raw
materials. The investors can easily access around more than 50 major community markets which
are divided into soft kind of commodities and hard commodities. The soft commodity products
goods include goods like coffee and cocoa (Henderson 2015). On the other hand, the hard
commodities include gold or oil. However, all kinds of commodities whether they are associated
with the energy or metals, food are an important part of everyday life. Few years ago, the
commodity trades were not so prevalent and people with average savings could not even dare to
invest in the commodity trading. Nowadays, many ways have emerged to facilitate the
participation of those who are not professionals but have the will to engage in the commodity
trading.
The present report will deal with the commodity trading projects and methods of
Sakhalin Energy Investment Company Ltd. growing in the Piltun- Astokhskoye oil field and also
in the Lunskoye gas field (Inkpen, Moffett and Ramaswamy 2017). Few of the major activities
of the company includes production, processing, transportation and marketing of natural gas and
oil. Gazprom, Mitsui, Royal Dutch Shell and Mitsubishi are among the major shareholders of the
company. The present report will deal with investigating the oil and gas projects of Sakhalin,
analyze its trade patterns and also the future prospects. It will further identify the major importers
and exporters. Lastly, it will investigate the commercial development and operations of the
hydrocarbon fields and sales in accordance with the licenses of Sakhalin -II. It will outline the
project infrastructure due to the benefit of the shareholders, the local community, Sakhalin and

3COMMODITY TRADE
also the Russian Federation. The report will conclude by giving an outline of the main topics
properly.
Discussion
Overview of the Company
The Sakhalin Energy Investment Company Ltd. or the Sakhalin Energy is an association
of several companies that is developing the Sakhalin -2 gas and oil project. The chief executive
of the company is Roman Dashkov. The principle business operation of the company is to
produce and export crude liquefied natural gas and oil. In the year 1994, the company started
operating for the first time and as per the annual reports of the company, it earns more than $
5.52 billion per annum. Gazprom is the parent company and there are approximately 2,230
employees working at present. The Sakhalin energy develops the Lunskoye and Piltun-
Astokhskoye gas fields which is commonly known as the Sakhalin – II project in the Sea of
Okhotsk situated off the shores of Sakhalin Island in the far east of Russia. The net asset of the
company by the year 2017, is $ 860 million. These include, three of the offshore gas and oil
platforms , the Piltun-Astokhskoye-A ( PA-A / Molikpaq), Piltun-Astokhskoye-B (PA-
B) and Lunskoye-A (LUN-A). There are also transsakhalin pipeline system, booster station,
onshore processing facility, oil export terminal and liquefied natural gas plant.
About the Sakhalin Project -1
The Sakhalin -1 project consists of Japan, Russia, America and India from where a good
number of participants are associated with this project and it is mainly operated by Exxon
Neftgas Limited which is a subsidiary of Exxon Mobil. The Exxon Neftgas Limited is a U.S
based subsidiary and holds almost 30 percent interest. The Russian oil company Rosneft acts