Gazprom and Shell highlight Sakhalin II project success
RELEASE
Release
Kuala Lumpur (Malaysia) hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Peter Voser, Chief Executive Officer of Royal Dutch Shell within the 25th World Gas Conference.
The parties discussed bilateral cooperation in the energy sector.
Alexey Miller and Peter Voser highlighted that the Sakhalin II project was progressing successfully as well as examined the issues of bilateral cooperation deepening.
Background
Shell is a British-Dutch petroleum company focused on hydrocarbons production, processing and marketing in over 90 countries of the world.
On April 18, 2007 Gazprom and the shareholders of Sakhalin Energy (Royal Dutch Shell, Mitsui & Co., and Mitsubishi Corporation), the Sakhalin II project operator, signed the Purchase and Sale Agreement providing for Gazprom to acquire a stake of 50 per cent plus one share in Sakhalin Energy.
As part of the project, Russia's first LNG plant was commissioned in early 2009 and Russian LNG supplies to foreign consumers started. In 2010 the plant reached the design capacity of 9.6 million tons per annum.
On November 30, 2010 Gazprom and Shell signed the Protocol on Global Strategic Cooperation providing opportunities for wider interaction of the companies in hydrocarbons exploration, production, processing and distribution in Russian and international energy markets.
On June 16, 2011 Gazprom Neft and Shell signed the Basic Terms and Conditions of the Agreement stipulating the study of possible ways to create a joint venture for joint projects delivery in Western Siberia, other Russian regions and in third countries.