Putin to take control of project owned partly by Shell

Putin to take control of project owned partly by Shell: Vladimir Putin has signed a decree that will possibly allow Russia to take hold of an energy project owned by Gazprom, Shell as well as other foreign entities.

The decree hands over the rights of the project to a new Russian business.

At present, Shell has a 27.5% stake valued at $4.1 billion (£3.4bn).

Sakhalin-2 is one of the world’s biggest integrated, export oriented, oil & gas projects, alongside Russia’s 1st offshore gas project, says the project’s overview documents.

The project operator, Sakhalin Energy Investment Company Ltd. is owned by Gazprom, Shell, Mitsui & Mitsubishi.

The project contains 3 offshore platforms, an onshore processing facility, 1,900 kilometres of onshore & offshore pipelines, an oil export terminal as well as a liquefied natural gas plant.

Bloomberg mentioned a statement signed by Mr Putin, which explains threats to Russia’s natural interests and economic security.

“As a shareholder, Shell has always acted in the best interests of Sakhalin-2 & in accordance with all applicable legal requirements.

“We are aware of the decree & are assessing its implications.” A representative of Shell said.

Putin to take control of project owned partly by Shell