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Reuters: Russian threat to scrap Shell’s Sakhalin-2 contract and claim billions in damages

Headline: Shell declines comment on Sakhalin legal challenge

Fri Nov 10, 2006 10:05am ET

LONDON, Nov 10 (Reuters) – Royal Dutch Shell Plc (RDSa.L: Quote, Profile, Research) declined to comment on Friday on comments from a Russian environment official that his agency might scrap Shell’s contract to develop the $22 billion Sakhalin-2 project and claim billions of dollars in damages.

Shell spokesman Stuart Bruseth referred inquiries to Sakhalin Energy, the Shell-led consortium running the project in which Shell has a 55 percent stake.

© Reuters 2006. All Rights Reserved.

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