Allen & Overy (A&O) has made the shortlist of potential legal advisers to the financiers of Sakhalin-2, a $10bn (£7.1bn) energy project, which is set to be Russia's largest ever foreign direct investment
The firm is one of three to have been shortlisted to advise an unannounced consortium of European and multilateral financiers. Due to the mystery surrounding the project's financing, no other firms with a Russian presence have admitted to being on the shortlist.
"Due to the mystery surrounding the Sakhalin-2 project's financing, no other firms with a Russian presence have admitted to being on the shortlist"
The Lawyer understands that Clifford Chance is in the running, although the magic circle firm did not confirm or deny this. Sakhalin-2 is a project to build a gas pipeline on the island of Sakhalin, which is being run by a consortium called the Sakhalin Energy Investment Com-pany. The main shareholders in the company are Shell, Mitsubishi and Matsui. Linklaters has been appointed as main adviser to the company, with Stuart Salt, a London partner, leading the team. Sakhalin-2 is Russia's first offshore project. The Russian Federation and the Sakhalin government have entered into a production-sharing agreement with the company over Sakhalin-2.