Thursday, December 21, 2006. Page 7.
By Miriam Elder
Staff Writer
Shell is due to sell half of its 55 percent stake in Sakhalin-2 to Gazprom for cash, a source close to the talks said Wednesday, in an imminent deal that looks likely to be a significant setback for a major blow to the oil major.
The project’s three shareholders will each give up one-half of their holdings to hand Gazprom a controlling stake, the source said, citing part of the proposed deal finalized last week.
Project operator Shell would then have a stake of 27.5 percent, while Mitsui would reduce its stake to 12.5 percent from 25 percent and Mitsubishi to 10 percent from 20 percent. Gazprom would need just 50 percent plus one share to take control.