From pages 48 & 49 of Royal Dutch Shell and its sustainability troubles Background report to the Erratum of Shells Annual Report 2010
The report is made on behalf of Milieudefensie (Friends of the Earth Netherlands)
Author: Albert ten Kate: May 2011.
The Sakhalin-2 project
According to its developers, the Sakhalin-2 project is the world’s largest integrated oil and gas project. The capital expenditure for this project amounted to USD 21.3 billion from 2001 through 2009, while total costs exceeded USD 24 billion.
The project is about extracting gas and oil offshore Sakhalin Island, in the Russian Far East. The fields are called Lunskoye (mostly gas) and Piltun-Astokhskoye (mostly oil). The company Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) is the operator of the project. Royal Dutch Shell is a partner and lead technical adviser to the operator. Under the shareholding structure of Sakhalin Energy, Gazprom holds 50% (plus one share), Shell 27.5% (minus one share), Mitsui 12.5% and Mitsubishi 10%.