Russian News And Information Agency RIA Novosti: GAZPROM TO GET STAKE IN SAKHALIN-2: “Gazprom and Shell are about to make an agreement on granting Gazprom a stake in the Sakhalin-2 project…” (ShellNews.net) 12 April 05

LONDON, April 12 (RIA Novosti) - Gazprom and Shell are about to make an agreement on granting Gazprom a stake in the Sakhalin-2 project, Gazexport's head and Gazprom's member of the board Alexander Medvedev said.

According to Medvedev, Gazprom can get a stake in Sakhalin-2 in exchange for a 50% stake in the Neocomian deposit development project at the Zapolyarnoye gas field.

Commenting on the outcome of the recent talks between Shell and Gazprom, Medvedev said that Gazprom would get 25% plus one share in the Sakhalin-2 project in exchange for a stake of up to 50% in the Neocomian deposit development project at the Zapolyarnoye gas field.

"We are about to sign the basic agreements. Participating in our assets is possible only for foreign partners providing equivalent strategic assets in return," Medvedev said.

The Sakhalin-2 production sharing agreement (PSA) was signed on June 22, 1994 and took effect immediately. The Russian government and the Sakhalin Region administration were signatories on behalf of the Russian Federation. In 1994, the consortium set up the Sakhalin Energy company to implement the Sakhalin-2 integrated oil and gas project. Shell's subsidiary Shell Sakhalin Holding owns 55% of Sakhalin Energy's stock.

The Zapolyarnoye oil and gas condensate field is situated 220 km from Novy Urengoi in the Yamal-Nenets Autonomous District (Western Siberia). Its total natural gas reserves exceed 3.3 trillion cu.m.

The field reached its designed capacity, 100 billion cu.m of gas a year, on October 2, 2004.

391 wells are operational at the field now, with their output exceeding 285 million cu.m of gas a day.

http://en.rian.ru/rian/index.cfm?prd_id=160&msg_id=5499396&startrow=1&date=2005-04-12&do_alert=0

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