The Japanese company Taiyo Oil has purchased a shipment of Russian Sakhalin Blend crude oil from Sakhalin as part of its efforts to diversify supply sources outside the Middle East, a company representative told TASS.
According to a representative of Taiyo Oil, the company “bears a social responsibility to ensure stable supplies of petroleum products“ and in this regard “is acting in an appropriate manner in cooperation with the Natural Resources and Energy Agency“. For this purpose, national oil reserves are used and “efforts are being made to diversify supplies to Japan from regions outside the Middle East“.
The company representative noted that “Sakhalin Blend crude oil supplies are not subject to sanctions“. However, “no decisions have been made regarding future purchases of Sakhalin Blend crude“.
Sakhalin Blend is a Russian crude oil grade produced as part of the Sakhalin-2 project in the Russian Far East.
It is a blend of crude oil from the “Piltun-Astokhskoye“ field and gas condensate from the “Lunskoye“ and “Kirinskoye“ fields.
The grade is light and sweet (low in sulfur). Its density is about 45.5° API, and the sulfur content is approximately 0.16%.
It is loaded from the terminal at the port of Prigorodnoye, located in the southern part of Sakhalin Island.
The main buyers are in the Asia-Pacific region, mainly China. In June 2025, Japan resumed its imports through the company Taiyo Oil after a break of more than two years.
Sakhalin Blend exports to Japan are subject to an exemption from the G7 price ceiling. This was done in order to maintain the stability of the Sakhalin-2 project, which is critical for the supply of liquefied natural gas (LNG) to Japan.
China remains the dominant customer, despite sanctions on the icebreaking tankers used to transport it.
The grade is usually traded against the regional benchmark Dubai crude. In periods of high risk or market fluctuations, it may be offered at a discount to market quotes.
Taiyo Oil Company, Limited is an independent Japanese energy company headquartered in Tokyo, founded in February 1941.
It plays a key role in Japan's energy security, particularly by maintaining operations to import energy resources from Russia under special conditions.
The company's main production facility is the Shikoku Operations refinery (in Imabari, Ehime Prefecture), which has a crude oil processing capacity of 138,000 barrels per day.
The company's products (gasoline, kerosene, fuel oil, etc.) are sold under the SOLATO brand in a network of over 300 gas stations throughout Japan.
In addition to fuels, Taiyo Oil produces petrochemical products such as benzene and xylene.
The company is actively investing in the production of sustainable aviation fuel (SAF) at its Okinawa base, aiming for a capacity of 200,000 kl per year by 2029-2030.
Taiyo Oil is the first Japanese company to resume imports of Russian crude oil after a long interruption due to sanctions.
In June 2025, the company purchased 600,000 barrels of Sakhalin Blend at the express request of the Japanese government to ensure the stability of the Sakhalin-2 project, which supplies about 10% of the country's liquefied natural gas (LNG).
Taiyo Oil has the technological capability to process the light and sweet Sakhalin Blend, making it a preferred partner for these specific supplies.
These transactions are carried out in strict compliance with G7 exemptions aimed at preserving the energy security of the country. stability of Japan.
Taiyo Oil continues to be the fourth largest oil refiner in Japan and remains strategically important for the diversification of supplies in the face of instability in the Middle East