December 17, 2006
Dominic O’Connell
ROYAL DUTCH SHELL’s cherished plans to boost production by 2009 are at risk from the continued struggle for control of its Sakhalin field in Siberia.
Jeroen van der Veer, Shell’s chief executive, was in Moscow on Friday for another round of talks with Alexei Miller, his counterpart at Gazprom, the state-controlled gas group.
Gazprom is expected to take a large, and possibly controlling, stake in the Sakhalin II field from Shell. The deal could be announced early next year, along with an agreement on how cost overruns on the project will be apportioned. Shell declined to comment beyond confirming “constructive” talks had taken place.