energy giant, state-owned Gazprom, has taken control
of the Sakhalin-2 oil and gas field from Anglo-Dutch
rival Shell for $7.5 billion for one share in excess
of a 50-per cent stake.
transaction reduces to half the stakes of Shell and
its Japanese consortium partners Mitsui and Mitsubishi
in the $22- billion project. Shell's stake in the project
stands halved to 27.5 per cent and that of the Japanese
firms to 12.5 and 10 per cent respectively.
to a statement from Shell, the consortium, "will
remain the operator of the Sakhalin II project. Gazprom
will play a leading role as majority shareholder while
Shell will continue to significantly contribute to SEIC
management and remain as technical advisor."
staement also says that the completion of th the project
on schedule is the consortium's "key focus"
to allowing LNG to be delivered to existing customers
in Japan, Korea and the North American West Coast. All
existing LNG sales contracts will remain in force and
will be honoured, the statement added.
has been facing accusations from the Russian authorities
that have accused the oil giant of breaking environmental
and criminal laws, which analysts says were designed
to strengthen the government's position in renegotiating
the development of the field. Shell has denied the charges.
the deal was signed, President Putin said he was glad
that the issue had been resolved.
to be finished in 2008, Sakhalin-2, with estimated resources
of some 45 billion barrels oil equivalent is the largest
integrated oil and gas project in the world and a production
capacity of 80,000 barrels oil equivalent per day.
next phase of the development, in which $12 billion
had been invested
by the end of Q3 2006, will take the project capacity
to 340,000 barrels oil equivalent per day, including
9.6-million tones per year of LNG production. The project
is 80-per cent complete.