YUZHNO-SAKHALINSK, RUSSIA (MarketWatch) — The entry of Russian gas giant OAO Gazprom (GSPBEX.RS) into Sakhalin-II will likely result in the alleviation of regulatory pressure on the project’s operator, Sakhalin Energy Ltd., a member of Russia’s chamber of commerce, told a conference on Sakhalin Island Wednesday.
“We must introduce Russian participation, of course that means Gazprom,” said Zalery Garipoz, head of the chamber’s oil industry development committee.
Once Gazprom enters the project, “there will be no more criticism of Sakhalin Energy, there will be only ‘hoorah’,” he said.
Sakhalin-II, an offshore oil and natural gas development project in the northeastern area of Russia’s Sakhalin island, is operated by international consortium Sakhalin Energy, in which Royal Dutch Shell PLC (RDSA) has a 55% stake. A Mitsui & Co. (8031.TO) unit holds a 25% stake, and Diamond Gas Sakhalin, a Mitsubishi Corp. (8058.TO) unit, holds a 20% stake in the consortium.
Both Sakhalin-1 and Sakhalin-2 projects are being developed by Western oil companies under production-sharing agreements signed during the 1990s, when oil prices were lower and when Russia was in greater need of foreign capital to develop its energy reserves. A third agreement was granted to Total SA, of France, to develop the Kharyaga oil field in the Nenets region, north of the Arctic Circle.
Under the deals, the oil companies win tax breaks, while the government gets a share of the oil and gas once the project’s production costs have been covered.
As prices have surged in recent years, Russia, like many other oil-producing countries, has shifted its approach to give precedence to local companies — primarily state-controlled giants OAO Gazprom and OAO Rosneft — relegating foreign companies to junior-partner roles.
-Edited by Jay Alabaster
-Contact: 201-938-5400
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.
