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Bloomberg: Russia Approves Sakhalin Environmental Plan From Shell, Gazprom

By Lucian Kim

April 16 (Bloomberg) — Russia’s Natural Resources Ministry approved a plan from Royal Dutch Shell Plc and OAO Gazprom to remedy environmental violations at their Sakhalin-2 venture.

“Work to remedy the majority of violations must be undertaken now, since we signed off on this document in a short period of time,” Natural Resources Minister Yuriy Trutnev said in an e-mailed statement today.

Project operator Sakhalin Energy presented the ministry with a plan on March 20. Trutnev said it was “satisfactory” and in compliance with Russian law.

Inspectors from the Natural Resources Ministry uncovered a raft of environmental violations at Sakhalin-2 last year, just as Gazprom was negotiating with Shell and its Japanese partners to take a stake in the project. Shell ceded control of the development to Gazprom in December for $7.45 billion.

Once a final agreement is reached, Shell’s holding will fall to 27.5 percent, with Mitsui & Co. retaining 12.5 percent and Mitsubishi Corp. 10 percent.

To contact the reporter on this story: Lucian Kim in Moscow at [email protected]
Last Updated: April 16, 2007 07:59 EDT

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