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MosNews: Shell Wants More Business in Russia Despite Sakhalin-2 Problems

Created: 26.01.2007 17:08 MSK (GMT +3), Updated: 17:08 MSK

The chief executive of Royal Dutch Shell said on Friday, Jan. 26, the company will continue to seek new business in Russia, despite the fact that last year it had to cede part of its Sakhalin-2 project to state gas monopoly Gazprom.

Jeroen Van der Veer told reporters at the World Economic Forum in Davos that Russia had “a lot of oil, a lot of gas and we happen to know something about it.”

“We will continue to look at all opportunities that we have and might be possible,” he was quoted by Reuters.

Russia, holder of the world’s largest gas reserves, is tightening its grip on the country’s energy industry at a time when firms such as Shell are facing a growing challenge in gaining access to larger sources of new reserves.

Gazprom bought half of the $22 billion Sakhalin-2 oil and gas project in December from Shell and its partners, sealing the Kremlin’s grip on the huge Russian energy sector. The Russian monopoly paid $7.45 billion for the controlling stake.

The deal followed months of pressure from Russian officials who threatened to delay the oil and gas project.

Shell may work with Gazprom on future projects in Russia, Van der Veer said.

“I hope so,” he said. “Gazprom is a very important partner for Shell.”

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