Mon Dec 18, 2006 12:52am ET
By Mayumi Negishi
TOKYO, Dec 18 (Reuters) – Japan’s Mitsui & Co. Ltd. (8031.T: Quote, NEWS , Research) and Mitsubishi Corp. (8058.T: Quote, NEWS , Research) are seeking cash from Russia’s state gas monopoly Gazprom (GAZP.MM: Quote, Profile , Research) in exchange for part of their stakes in the $22 billion Sakhalin-2 project, sources close to the talks said on Monday.
The two Japanese partners, who together hold a 45 percent stake in Sakhalin-2, are in talks with majority stake holder Royal Dutch Shell (RDSa.L: Quote, Profile , Research) about ceding control of the world’s biggest LNG project to Russian ownership, the sources said.
“We’re not all that sure we want a stake elsewhere,” an industry source said about exchanging shares in the Sakhalin-2 project for assets in other projects in Russia.
The Japanese stakeholders are also demanding a guarantee that Gazprom will deliver a steady supply of gas to Japanese electricity and gas companies, another source said.
Mitsui President Shoei Utsuda and Mitsubishi President Yorihiko Kojima met with Shell CEO Jeroen van der Veer in Moscow and Russian officials over the weekend to discuss the project, due to come onstream in 2008 and supply 9.6 million tonnes per year of gas to Japan, South Korea and North America.
Resource-poor Japan has been promised over half that supply.
Talks now hinge on how to value the project, the sources said, with Shell and Gazprom expected to reach an agreement within the week.
Spokesmen from Mitsui and Mitsubishi both said they could not disclose the details of the talks. Mitsui added that the talks were progressing constructively.
The operating company Sakhalin Energy is 55 percent-owned by Shell, with a Mitsui subsidiary holding a 25 percent stake and a Mitsubishi unit holding 20 percent.
Negotiations on the Sakhalin project turned bitter after Shell doubled its cost estimate for Sakhalin-2 last year, angering the Russian government, which will have to wait longer for royalties from the project.
The project has since been under attack from threats of sanctions, withdrawal of permits and damages claims.
Mitsui shares rose 2.7 percent at 1,730 yen at 0526 GMT, while Mitsubishi rose 1.3 percent to 2,275 yen, both outperforming the benchmark Nikkei average < .N225>, which rose 0.25 percent. (Additional reporting by Osamu Tsukimori)
© Reuters 2006. All Rights Reserved.
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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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