Royal Dutch Shell Plc  .com Rotating Header Image

The Observer: Shell’s Bermuda arm seeks money from UK taxpayers

Nick Mathiason
Sunday July 30, 2006

The Shell-owned consortium behind the $20bn oil and gas project in Sakhalin off the east coast of Russia is seeking UK taxpayers’ money to help pay for the scheme, even though it is based in the tax haven of Bermuda.

Campaigners are demanding the Export Credits Guarantee Department deny funds to Sakhalin Energy. James Leaton of WWF said: ‘ECGD was set up to promote UK exports. Less than 5 per cent of the project is British and it is already 75 per cent complete. It is unacceptable that taxpayers’ money is being spent to endorse projects based in a tax haven that contribute to climate change.’

The ECGD is evaluating whether to issue credit guarantees to Sakhalin that could total $1bn. Shell said: ‘UK contractors will benefit from multi-million pound contracts on this project.’

Sakhalin-2, the world’s most expensive infrastructure project, will allow gas to be frozen and sent on ships to south-east Asia and beyond. It has doubled its original $10bn budget and is vital to Shell’s future. Gazprom is negotiating for a stake in the scheme, which would dilute Shell’s share. Shell is desperately seeking finance around the world for the project.

Shell last week reported record profits on revenues of $83.1bn.

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Comment Rules

  • Please show respect to the opinions of others no matter how seemingly far-fetched.
  • Abusive, foul language, and/or divisive comments may be deleted without notice.
  • Each blog member is allowed limited comments, as displayed above the comment box.
  • Comments must be limited to the number of words displayed above the comment box.
  • Please limit one comment after any comment posted per post.