Russia’s oil and gas fields have proved treacherous for other foreign investors. When Royal Dutch Shell PLC announced that costs at the Sakhalin-2 project had nearly doubled, Russian environmental regulators bombarded it with complaints until Shell sold a majority stake in the project to a Kremlin-run gas company in 2006.
Posts on ‘August 5th, 2008’
However, a person close to BP said it looked bad for the London-based oil major. “This is another step in the corporate takeover,” he said. “They’ve got the CEO to leave the country, they’ve got the 148 BP specialists out, and now they’ve got the CFO to resign.”
Crude oil prices fell below $120 a barrel for the first time in three months on Monday, as new data underscored the damage high energy costs are inflicting on US consumers.
The state group’s repeated failure to meet its share of development costs for operations with companies including Royal Dutch Shell and Chevron has stalled the development of key projects needed to boost output.
James Owen?s resignation comes 10 days after Robert Dudley, TNK-BP?s chief executive, left Russia citing a campaign of harassment. It will leave only three members of the group?s original five-member core executive committee in Russia.
The company has spent the past year fighting off claims from the tax, environmental and immigration authorities in what has been seen by some industry specialists as a rerun of the kind of problems that afflicted Shell until it sold part of its shareholding in Sakhalin to state-owned Gazprom.
The British group was accused of overstating its reserves to boost its share price, provoking fears that it could face the same renationalisation moves as Shell?s natural gas venture in Sakhalin and BP?s Kovykta programme.
WASHINGTON D.C. ? The National Association of Shell Marketers is coming out strong against the “lost profits” provision in the incentive agreements designed by Shell Oil Co.