AFX Europe (Focus): Shell, Sibir ship first oil from 1.25 bln usd Salym field in Siberia: “The Royal Dutch/Shell Group and Sibir Energy PLC have shipped the first oil from the Salym field in western Siberia” (ShellNews.net) 7 April 05

LONDON (AFX) - The Royal Dutch/Shell Group and Sibir Energy PLC have shipped the first oil from the Salym field in western Siberia.

Development of the field has progressed "rapidly", with industrial production expected to begin in the fourth quarter of 2005, Sibir said in a statement.

The cost of developing the three fields -- Upper Salym, West Salym and Vadelyp -- is estimated to reach 1.25 bln usd in total, of which 480 mln usd has already been spent.

A further 155 mln usd will be invested in the coming months, making a total of 278 mln usd for the entire 2005, it said.

Shell and Sibir each own a 50 pct stake in the project.

mbe/bam

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