Monday, December 18, 2006

SHELL BOSS HEADS FOR RUSSIA TALKS !


Shell's boss is expected for talks in Russia later this week. The boss of Anglo-Dutch energy giant Shell is to fly to Moscow for talks with Russia's energy minister over a $22bn (£11bn) oil and gas project.
Jeroen van der Veer is expected to meet Viktor Khristenko later this week to discuss the Sakhalin-2 project.
Shell is widely expected to cede control of the venture to Russia's state-run energy firm Gazprom.
Shell has been under intense pressure from officials keen to regain control of Russian assets, analysts have said.
Japanese partners

The massive Sakhalin-2 is worth billions of dollars to investors.
Earlier this month Moscow suspended 12 vital water-use permits for Sakhalin-2, after previously revoking environmental approval for the project.
Shell recently restarted talks with Gazprom over a possible swap or sale of assets in the project, which is situated off Russia's Pacific coast.
Shell currently holds a 55% stake in Sakhalin-2, with Japanese companies Mitsui and Mitsubishi sharing the rest.
Reports have suggested that both Japanese firms are seeking cash from Gazprom in exchange for a slice of their stakes in Sakhalin-2.
Mitsui said talks on the issue were progressing constructively.
BBC NEWS REPORT.

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