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hemscott.com: Gazprom invests nearly 1 bln usd in Sakhalin-2 project

LONDON (Thomson Financial) – Russian gas giant Gazprom said it has invested around 956 mln usd in the Sakhalin-2 project since it took control of the vast Siberian oil and gas field early this year.

Its share in the losses of Sakhalin Energy, the Gazprom-led developer of Sakhalin-2, from the date of acquisition to end-June was around 5.3 mln usd, the company said in a statement accompanying its second-quarter results.

The value of the group’s investments in Sakhalin Energy totaled 8.4 bln usd as of June, it said.

Gazprom paid 7.5 bln usd in cash to take a stake of 50 pct plus one share in the 20 bln usd Sakhalin-2 project, halving Royal Dutch Shell PLC’s interest to 27.5 pct, Mitsui & Co Ltd’s to 12.5 pct and Mitsubishi Corp’s to 10 pct.

The agreement was signed in Dec 2006 and was completed in April this year.

Sakhalin Energy raised oil production by 800,000 barrels to 12.4 mln barrels in 2007 despite the disruptions caused by bad weather that damaged some key facilities, forcing the group to start the seasonal production shutdown on Nov 25, weeks earlier than planned.

Sakhalin Energy is currently installing new equipment at Molikpaq to allow year-round oil production from next year. It has yet to produce liquefied natural gas. [email protected] mbe/ms1

http://www.hemscott.com/news/latest-news/item.do?newsId=56019258491867

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