OGJ NEWSLETTER

A mix of progress and setbacks continues to mark the massive challenge of revitalizing the Soviet oil industry. Delay in awarding contracts to develop oil and gas off Sakhalin Island in the Soviet Far East may stem from more than just bureaucratic infighting between local and central republic officials. Japanese sources say Sakhalin's local administration wants the winner to facilitate $15 billion in foreign loans to develop roads, airports, and telecommunications on the island.

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