In one of the most blatant instances, Shell Oil was forced to yield control of its operations off Sakhalin Island in exchange for a payment of $7.4 billion from state-dominated Gazprom. Most outside analysts estimate that Shell’s share was worth $15 billion to $17 billion.
Posts Tagged ‘Sakhalin 2’
Kremlin ‘Capitalism’ Is a Threat to the West
Gazprom wrested control of the $22 billion Sakhalin-2 oil and gas project from Royal Dutch Shell for a fraction of market value.
Gazprom Buys LNG due to Sakhalin-2 setback
Deliveries from the Sakhalin-2 project to customers in Japan and South Korea were postponed to early next year from the middle of 2008, Platts said.
Shell in talks with Sibir on swap deal
Two years ago, the company was forced to surrender control of the huge Sakhalin-II oil field to Gazprom in what was seen as part of a wider move by the Kremlin to renationalise its resource assets.
Shell courts Russia with asset swap plan
Shell declined to comment, but a spokesman said the company had “learned our lesson in Russia” after the forced sale of half its stake in the $22bn Sakhalin-II oil and liquefied natural gas field, off Russia’s east coast, in 2006 to state-owned Gazprom.
Imperial surges on ONGC approach
Mr Mitvol had led the pressure on Royal Dutch Shell over its Sakhalin 2 oil and gas project off the east coast of Russia, which led to it having to cede control in the project to Gazprom.
Cook to break the mould at Shell
Cook joined the Shell board in 2004 in the aftermath of the embarrassing reserves scandal that cost chairman Sir Phil Watts and finance director Judy Boynton their jobs. She was devastated by the shake-up, having liked and respected Watts, but she refused to be deflected by the upheaval, choosing instead to get on with the job.
Shell: time to deliver
GOOD things come to those who wait. No pain, no gain. Every cloud has a silver lining. For investors in Royal Dutch Shell in need of a pep talk, these might be clichés worth repeating.
There is a chance however remote that growth might come inorganically, says ABN Amro, describing a merger with BP or Total as “possible and desirable”
From Russia With Contempt
The truth is that the rule of law in Russia was mocked, not strengthened, under Vladimir Putin, and it remains a sham. It offered no more protection for Shell (squeezed out of the Sakhalin-2 gas project after being threatened with a $30 billion environmental lawsuit) or Yukos (dismantled by the Tax Ministry and sold off to Kremlin allies) than it does now for BP or 140 million ordinary Russians.
Allegations in Russia Could Hurt BP Venture
A year earlier, Royal Dutch Shell was pressured to sell a controlling stake in the worlds largest oil and natural gas development, Sakhalin-2, to Gazprom. In that case, the government cited environmental damage in a pipeline project.
Kazakh superfield delayed yet again
Of the 15 former Soviet republics, Kazakhstan is sitting on the sole “superfield” discovered in the last three decades. With proven reserves of 35 billion barrels, Kazakhstan potentially contains the world’s third largest reserves of oil, after Saudi Arabia and Iraq.
More documents highly embarrassing to Shell published for the first time
Printed below are links to documents released to the owners of this website (Alfred Donovan and John Donovan) by Royal Dutch Shell following a Data Protection Act application: – 1. Shell internal email correspondence recording Shell’s intent to “Kill” a Sunday Times story about our involvement in the Sakhalin-2 debacle; Sakhalin-2 file 7: 5 pages [...]
Mr No-nonsense leads at Regal (An example of spin by the Financial Times)
David Greer knows about bad publicity. As deputy chief executive of Royal Dutch Shell’s Sakhalin arm, running the Sakhalin-2 project off the far-east coast of Russia, he suffered the indignity of having an internal memo, which was designed to motivate his managers – “lead me, follow me, or get out of my way” – leaked to the Financial Times last year.
Our interventions in the Sakhalin-2 Project
Below is a compilation of information put together for certain third parties. It all relates to our involvement in the Sakhalin-2 project which led to Shell’s loss of its ownership stake and the resignation of David Greer. We have published for the first time the correspondence file relating to Oleg Mitvol, the so called “Kremlin Attack Dog”.
Mitvol wins Order of the Broom Cupboard
Having bullied Shell into handing over control of its Sakhalin-2 gas field, we thought his reward would be the Order of Lenin, not a broom cupboard.


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