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Business Week online: Shell's Uneasy Island Venture

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Shell's Uneasy Island Venture

Click to launch slideshow On Sakhalin, in easternmost Russia, Royal Dutch Shell is staking out an expensive oil and gas subsidiary. These pictures show what life is like

On Sakhalin Island in the Russian Far East, Royal Dutch Shell is building what is probably the world's most expensive oil and gas subsidiary. Shell's subsidiary, Sakhalin Energy, is developing two fields — one oil and one gas. The fields lie off the island's northeast coast. The oil and gas will be brought onshore and then transported by two buried pipelines to facilities at the island's southern end. There the oil and the gas will be supercooled into liquefied natural gas, loaded onto ships, and transported to world markets. The cost of the whole enterprise is now estimated at $20 billion. London Bureau Chief Stanley Reed visited Sakhalin Island recently. Here's a look at Shell's undertaking and moments from the lives of the local population of 530,000.

Edited by Rose Brady

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