AFX Europe (Focus): Royal Dutch/Shell says Sakhalin II Phase 2 costs could be about $20 billion US dollars
Thursday July 14, 2005
AMSTERDAM (AFX) – The Royal Dutch/Shell Group said investment costs for the Sakhalin II phase 2 project are provisionally anticipated to be “of the order of 20 bln usd.”
This would cover all planned development activity, including drilling activity through to 2014, with liquefied natural gas (LNG) deliveries starting in the summer of 2008, the company added.
Sakhalin Energy Investment Co (SEIC), a venture between Royal Dutch/Shell Group, Mitsui and Co and Mitsubishi Corp, runs the Sakhalin II project.
The estimates by SEIC “are still work in progress and remain subject to shareholder review and confirmation,” Shell said.
SEIC has more than 75 pct of its LNG capacity sold under long-term contracts and is in talks with buyers for the balance of production capacity.
Shell’s 2005 total capital investment, across all its business activities, remains about 15 bln usd, excluding the 45 pct minority share of Sakhalin II held by Mitsui and Mitsubishi, Shell said.
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