Shell eyes major project on Russia's Yamal

Mumbai: Royal Dutch Shell proposes to expand its presence in Russia by entering "a huge-scale long-term liquid gas and oil project" with local companies on the Yamal peninsula, reports quoting its chief executive said.

Shell chief executive Jeroen van der Veer, part of a high-level Dutch business delegation led by Prime Minister Jan Peter Balkenende, said Shell will work with Russian companies.

After a lengthy meeting with Russian President Vladmir Putin, van der Veer said Putin expressed satisfaction with the progress of Shell''s business in Russia. Such public statements often indicate that the Kremlin is close to blessing a major business deal.

Shell has repeatedly said it was looking to expand its presence in Russia and gain a third large-scale project despite being forced last year to cede control in the $22 billion Sakhalin-2 oil and gas project to Gazprom. (See: Shell yields on divesting Sakhalin gas stake to Gazprom)

Shell retains a 25-per cent share in Sakhalin-2 and also controls the mid-sized Salym oil production project in Siberia.