Thu Apr 26, 2007 8:12 AM BST
LONDON, April 26 (Reuters) – Royal Dutch Shell (RDSa.L: Quote, Profile , Research) and its partners have agreed to pay an annual dividend to the Russian government as part of a deal to salvage its Sakhalin-2 project, the Wall Street Journal said on Thursday.
The dividend will be paid from 2010 onward and linked to the price of oil, the newspaper quoted an unidentified person familiar with the situation as saying.
“It’s going to be something under a billion dollars every year,” the person was quoted as saying.
Shell declined comment. Shell’s Japanese partners, Mitsui (8031.T: Quote, NEWS , Research) and Mitsubishi Corp (8058.T: Quote, NEWS , Research), were unavailable for comment.
Shell and the partners this month ceded control in the $22 billion venture to state-controlled Gazprom, at what analysts considered a knock-down price, after more than a year of pressure on the project from the Kremlin.
Analysts said the production sharing agreement (PSA) that Shell had negotiated in the 1990s offered the world’s second-largest, non-state controlled oil company more favourable terms than most other nations had agreed in the past decade.
A renegotiation of the PSA would have been a complex legal matter and the newspaper said the dividend allowed the terms to be changed without such complications.
However, the payments “won’t have a material impact on the economies of the project,” another person familiar with the terms was quoted in the newspaper as saying.
© Reuters 2007. All Rights Reserved.
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.
