The Independent: Sakhalin pipeline $10bn over budget
“Shell, the troubled oil giant, revealed yesterday that the costs of building its controversial Sakhalin gas project in Russia had shot $10bn (£5.7bn) over budget.”
By Philip Thornton
Published: 15 July 2005
Shell, the troubled oil giant, revealed yesterday that the costs of building its controversial Sakhalin gas project in Russia had shot $10bn (£5.7bn) over budget.
It said soaring metal prices, higher contractor fees and the fall in the dollar could double costs of the second phase to $20bn. In a further blow, Shell pushed back the date of the first deliveries of liquefied natural gas (LNG) from Sakhalin II to the summer of 2008 from November 2007.
It said estimates of costs of schedules of the project were still “under review”.
Malcolm Brinded, the head of exploration and production, said Shell was taking “immediate action” to address the issues. He said: “We are consulting and discussing with appropriate stakeholders to enable this critical and challenging frontier project to come to an acceptable completion. The exploration and production executive team … always recognised the massive challenges of this project.”
Sakhalin II is the second phase in a project that began in 1996 and saw the first oil produced three years later. It involves the construction of offshore platforms and pipelines to a new LNG plant and export terminals on the island.
The project has been criticised by environmental groups for potential damage to rare species as well as to local communities. Three months ago, Shell was forced to re-route the pipeline, which could eventually pump 140,000 barrels of oil a day, because it threatened the feeding grounds of the Western Grey Whale. There are thought to be only 100 left.
Shell said its global investment programme would total £15bn in 2005. Its shares closed up 4.15p at 549p.
( Posted here by John Donovan of http://royaldutchshellgroup.com/ )
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
