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Business Week: Take My Oil Field, Please

25 December 2006

Four-fifths of the way toward completion of the $20 billion Sakhalin 2 oil and gas megaproject on an island off eastern Russia, Royal Dutch Shell (RD ) has offered to give up control to energy giant Gazprom, reported Reuters on Dec. 11.

Moscow has been nagging Shell about cost overruns and environmental disputes. Shell says nothing has been agreed on, but it’s clear Gazprom will end up with a big share. Compensation could come in cash and a share of Gazprom gas reserves in Siberia.

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