Comments from a Shell insider on viewing the situation from the Russian perspective
EXTRACT: Gas fields and production facilities do not last forever, and by the time Shell have amortised the currently estimated development costs the Sakhalin fields will be starting to decline, and the production facilities will be reaching the end of their design life. So the Russians will have provided the gas, and received little or nothing in return, other than a depleted field, extinct whales, a damaged environment and some rusting facilities. Who can blame the Russians for being somewhat angered that a key national asset is being squandered?
THE ARTICLE
If Shell accepts a bid from a contractor to deliver a project on a specified date, at a specified cost, then the contractor accepts the financial risks of having overlooked some aspect of the project, and underestimated the costs. If, prior to completion, a contractor realises that he has underestimated costs by a factor of 2 or 3, would Shell agree to “renegotiate” the price to cover the additional costs? And what of the tenderers who bid accurately, only to lose the contract on the grounds of their cost estimates?
Shell negotiated a PSA with the Russian government, under which the Russian government agreed to pay less than $10bn for the Sakhalin development, to be paid out of gas belonging to the Russian state. Only after sufficient gas had been produced and sold by Shell to pay the agreed development costs would benefits accrue to the Russians. By doubling the costs, without approval, the date at which the Russians will start to receive income on a comparable basis has been pushed back by several years, and the “Net Present Value” (NPV) of the project for the Russians is therefore reduced to almost zero.
Gas fields and production facilities do not last forever, and by the time Shell have amortised the currently estimated development costs the Sakhalin fields will be starting to decline, and the production facilities will be reaching the end of their design life. So the Russians will have provided the gas, and received little or nothing in return, other than a depleted field, extinct whales, a damaged environment and some rusting facilities. Who can blame the Russians for being somewhat angered that a key national asset is being squandered?
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: 
MORE DETAILS:
A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
