PVR - The Irish Explorer

Putins' favourite oil and gas co. prevails.....

Royal Dutch Shell Gazprom pays 7.5 bln usd cash for Sakhalin-2 controlling stake


LONDON (AFX) - Russian gas monopoly Gazprom is paying 7.5 bln usd in cash to
acquire 50 pct plus one share in the giant 20 bln usd Sakhalin-2 project, which
is being developed by a consortium led by Royal Dutch Shell PLC.
Under the protocol they signed in Moscow today, Shell will have its 50 pct
stake reduced to 27.5 pct.
Japan's Mitsui & Co Ltd and Mitsubishi Corp will also see their interests
halved to 12.5 pct and 10 pct, respectively, under the deal.
Sakhalin Energy Investment Company Ltd, the joint venture that is in charge
of the project, will remain the operator of Sakhalin-2, Shell said.
"The shareholders now look forward to implementing the project in line with
the current schedule, including obtaining all necessary permits and approvals
granted in accordance with applicable Russian legislation and the PSA
(production sharing agreement)," Shell said.
monicca.egoy@afxnews.com