The Guardian (UK): Shell shock: “Now we learn that it has encountered cost overruns at its Russian gas project Sakhalin-2 and will have to look again at figures for upcoming capital expenditure. We all know about builders' estimates but Shell has now discovered that its figures are "out" to the tune of $10bn.” Friday July 15, 2005

Things almost seemed to be swell again for Shell. The soaraway oil price has helped to smudge memories of last year's reserves over-statement scandal. Board unification proceeded as planned and the company also began to get its public relations into some sort of order: wheeling Lord Oxburgh out to argue for action on climate change, for instance.

Now we learn that it has encountered cost overruns at its Russian gas project Sakhalin-2 and will have to look again at figures for upcoming capital expenditure. We all know about builders' estimates but Shell has now discovered that its figures are "out" to the tune of $10bn. What are they building in Russia? The east coast mainline?

Click Here to return to HOME PAGE