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Gazprom, Shell discuss asset swap

MOSCOW, April 12, 2011

Russian energy giant Gazprom and Anglo-Dutch oil major Shell discussed joint projects in West Siberia and in the east of Russia, Gazprom’s participation in Shell’s undertakings in third countries and increased liquefied natural gas (LNG) deliveries to quake-hit Japan from the Sakhalin-II project, Gazprom said on Tuesday.

Gazprom head Alexei Miller and Shell CEO Peter Voser held a working meeting on Tuesday to discuss the companies’ interaction under a protocol on global strategic partnership, the Russian energy giant said in a statement.

“The participants in the meeting also discussed the possibilities of joint operations for hydrocarbon refining and distribution in Russia and Europe, and Gazprom’s participation in Shell’s oil and gas exploration and extraction projects in third countries,” Gazprom said.

Miller and Voser also discussed the world energy product market and an increase in LNG supplies to Japan, which was hit by a powerful earthquake and tsunami on March 11. More LNG supplies to Japan are intended to quickly restore Japan’s energy balance.

Earlier reports said Shell may offer Gazprom assets in Asia in exchange for modernization of an LNG plant in Russia under the Sakhalin-II oil and gas project off Russia’s Pacific coast. Shell wants to boost the plant’s output by 50% and raise its stake in the plant.

Shell also plans to get access to new Russian offshore deposits to increase gas supplies to the LNG plant. Shell intends to choose foreign assets that would be of interest for Gazprom to get support from the Russian energy giant.

Gazprom and Shell are exchanging information on oil deposits in West Siberia.

The $22 billion Sakhalin II project, in which Russian gas monopoly Gazprom holds a controlling stake, has estimated reserves of 150 million metric tons (1.1 billion barrels) of oil and 500 billion cubic meters of natural gas.

The project’s other shareholders are Royal Dutch Shell plc with a 27.5% stake, Mitsui & Co. Ltd. with 12.5% and Mitsubishi Corporation with 10%.

MOSCOW, April 12 (RIA Novosti)


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