MOSCOW, Oct 10 (Prime-Tass) — The Audit Chamber, Russia’s public spending and revenue watchdog, has asked the government to consider “streamlining” the costs of Sakhalin Energy’s Sakhalin-2 oil and gas project, the watchdog said Tuesday.
The Audit Chamber said that Sakhalin Energy’s plans to increase its spending targets for 2003-2010 to U.S. $22.2 billion from $12.04 billion were unjustified. However, it did not elaborate how the project’s costs could be streamlined.
Meanwhile, last week Arkady Dvorkovich, head of the Russian president’s Expert Directorate, proposed revising the agreement. He said that if Sakhalin Energy wanted to increase its costs it should switch from its current production sharing agreement (PSA) taxation regime to the normal regime.
Under the Sakhalin-2 PSA, the government is expected to compensate for Sakhalin Energy’s costs by giving the company part of its share of oil until the project breaks even. The increase in the spending plan would reduce the government’s revenue from the project.
Earlier this month the Audit Chamber also said that Sakhalin Energy had underestimated its sales forecast for the Sakhalin-2 project’s second stage.
Sakhalin Energy based the forecast on the assumption that the oil price would initially be at $34 per barrel and rise 3% per year until 2045, the Audit Chamber said, adding that currently the price of oil is at $60 per barrel.
Additionally, the watchdog also criticized Sakhalin Energy for alleged violations of oil field development regulations.
Last month the Natural Resources Ministry cancelled the Sakhalin-2 project’s environmental approval. Oleg Mitvol, deputy director of the Federal Service for Natural Resources Oversight, said then that Sakhalin Energy would have to stop operations due to the cancellation.
The Sakhalin-2 project area is located near Sakhalin Island and has oil reserves of 150 million tonnes and gas reserves of 500 billion cubic meters.
Shell Sakhalin Holdings BV, a subsidiary of Royal Dutch/Shell, owns a 55% stake in Sakhalin Energy, while Mitsui Sakhalin Holdings, a subsidiary of Japan’s Mitsui, has a 25% stake and Diamond Gas Sakhalin, a subsidiary of Japan’s Mitsubishi, holds a 20% stake.
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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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