AMSTERDAM, June 8 (Reuters) – Russia’s Gazprom and Royal Dutch Shell have delayed a major asset swap deal beyond 2006 after Shell reported a huge cost overrun on its Sakhalin project last year, Gazprom said on Thursday.
“The capital costs for Sakhalin-2 are rising and negotiations might take longer than expected,” Gazprom’s export chief Alexander Medvedev told a news conference.
“It is important for the Russian government to understand the concequences well. I think it will take a lot more time than the end of the year,” he added. Last year Shell doubled its cost estimates for Sakhalin-2 to $20 billion.