By Chris Hughes
Published: December 29 2006 02:00 | Last updated: December 29 2006 02:00
Sakhalin throws up a fresh disappointment
Shell suffered a blow when it was forced to surrender control of Russia’s Sakhalin-2 oil field to state-backed Gazprom last week. Now the Anglo-Dutch oil group faces fresh embarrassment in defeat.
To re-cap, Shell sold half of its 55 per cent stake in Sakhalin to Gazprom to revive the project that Russia had grounded citing environmental reasons. The price Shell received – following months of wrangling – was better than many had expected. That helped Shell preserve some dignity despite losing control.
But yesterday it emerged that the terms of this transaction are not as favourable as they had seemed. Shell will have to contribute additional investment to Sakhalin beyond what investors had previously factored in.
This rather inconvenient detail was meant to stay confidential. Instead, it leaked into the Russian media.
True, this is a small setback relative to losing control over Sakhalin in the first place. From a solely financial perspective, the additional costs are not hugely burdensome for a company of Shell’s size. That was reflected in Shell’s relatively muted share price reaction yesterday.
But this is still a humiliating end to the saga for Shell. Meanwhile, the clumsy revelation of Shell’s true funding obligations raises questions about its communication skills. Surely the company could have been clearer in its guidance on the deal’s underlying economics last week.
Copyright The Financial Times Limited 2006
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.
