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Gazprom, Shell plan to increase gas production at Sakhalin-2

Russia’s gas monopoly, Gazprom, and British Shell corporation plan to increase production of gas in the Sakhalin-2 project

MOSCOW, September 11 (Itar-Tass) —— Russia’s gas monopoly, Gazprom, and British Shell corporation plan to increase production of gas in the Sakhalin-2 project, Russia’s Presidential Aide Sergei Prikhodko told a briefing devoted to the visit of the UK’s Prime Minister to Moscow on September 11-12.

“Shell is our strategic partner in Sakhalin-2,” he said. “It has a many-years’ experience in working at shelf deposits of the kind.”

“Gazprom and Shell agree and study an option to increase production at the Lunskoye field to supply gas to additional lines for further production of liquefied natural gas,” he continued. “We aspire increasing of production of liquefied natural gas at Sakhalin-2 in order to increase its supplies to the Asia-Pacific region’s market.”

The Sakhalin-2 project is implemented by Sakhalin Energy Company in compliance with a profit share agreement. The company was organised in 1994 with the purpose to develop Piltun-Astokhskoye and Lunskoye gas fields in the Sea of Okhotsk on Sakhalin’s shelf. In April of 2007, Sakhalin Energy’s shareholders signed a buying-selling agreement with Gazprom, where the companies shares are redistributed. According to the agreement, Gazprom’s share is 50 percent plus one share, Shell’s – 27.5 percent, Mitsui’s – 12.5 percent and that of Mitsubishi is ten percent.