By Neil Buckley and Arkady Ostrovsky in Moscow
Published: December 18 2006 00:32 | Last updated: December 18 2006 00:32
Royal Dutch Shell believes it could reach a deal to bring Gazprom, the Russian natural gas giant, into the Sakhalin-2 project by the end of this week, ending months of wrangling with Russian authorities over the $22bn development.
Jeroen van der Veer, Shell chief executive, flew to Moscow for talks with Alexei Miller, his counterpart from Gazprom, for a second successive Friday, and also met Viktor Khristenko, the Russian energy minister.
“The talks have been constructive and if everything proceeds smoothly we could have a conclusion by the end of the week,” said Alf D’Souza, a Shell spokesman in Moscow, on Sunday.
People familiar with the situation said last week that Shell had offered to cede majority control of the project to Gazprom, after a sustained assault on the development by Russian regulators. This weekend’s comments held out the prospect of the dispute being resolved by Christmas, or at least by the end of the year.
Majority control for Gazprom would reverse one of the most advantageous agreements secured by foreign energy companies in Russia in the 1990s.
Shell, which has a 55 per cent share in Sakhalin-2 – the largest foreign investment project in Russia – is understood to have offered to reduce its stake to 25 per cent. Mitsui and Mitsubishi, the Japanese companies that own 25 per cent and 20 per cent respectively, would sell 10 per cent each. Gazprom would emerge with 50 per cent plus one share.
Terms of the proposal have not been made public, but analysts have suggested Gazprom could pay about $4bn for a 50 per cent stake.
The chief executives of Mitsui and Mitsubishi were also in Moscow on Friday and met Mr Miller and Mr Khristenko.
Shell is understood to be pushing for a two-part agreement. One element would be a deal on Gazprom’s entry into the project. The other would be an agreement with the Russian government on an increased budget for the project and resolving the environmental charges brought against it.
The Shell-led Sakhalin Energy consortium developing Sakhalin-2 infuriated Moscow last year when it announced projected costs had doubled to $22bn.
Copyright The Financial Times Limited 2006
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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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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
