MOSCOW, Oct 23 (Prime-Tass) — Sergei Stepashin, director of Russia’s Audit Chamber, called Monday for “a drastic revision” of production sharing agreements (PSAs) for the development of Sakhalin Island’s oil fields.
The Audit Chamber is Russia’s public spending and revenue watchdog.
However, the PSAs must remain in effect, he added.
The increase in Sakhalin Energy’s Sakhalin-2 oil and gas project’s costs would be unprofitable for the Russian government, Stepashin also said.
Earlier this month 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.
Earlier in October Arkady Dvorkovich, a top presidential aide, suggested that Sakhalin Energy switch from the PSA taxation regime to the normal regime if it wanted to increase the costs.
The taxation of PSA projects differs from the taxation of other economic activities. In Russia the operators of PSA projects pay fewer taxes but have to give part of their output to the government. The Russian government’s share of output increases as PSA operators’ costs break even.
Russian authorities have recently probed the compliance of Sakhalin-2, and another PSA project, ExxonMobil-led Sakhalin-2, with environmental standards. They have also inspected the Kovykta field, which is controlled by a BP affiliate, Total’s Kharyaga deposit, 19 oil and gas field licenses held by Lukoil, as well as the projects of Gazprom Neft, a subsidiary of gas giant Gazprom, and state-controlled oil major Rosneft.
End
23.10.2006 20:02
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.
