December 22, 2006	Friday	Ziqa’ad 30, 1427

LONDON, Dec 21: Anglo-Dutch energy group Royal Dutch Shell said on Thursday that Russian state gas group Gazprom will become a 50 per cent shareholder in the Sakhalin-2 project at a cost of $7.45 billion.

Gazprom has bought a stake in Sakhalin Energy, the business entity driving the natural gas development project in the Russian far east, from Japanese trading houses Mitsui and Company and Mitsubishi Corporation, as well as from Shell.

“Royal Dutch Shell plc, Mitsui and Co. and Mitsubishi Corporation have signed a protocol to bring Gazprom into the Sakhalin Energy Investment Company (SEIC) as a leading shareholder,” said a joint statement released by Shell.

“Under the terms of the protocol, Gazprom will acquire a 50 per cent stake plus one share in SEIC for a total cash purchase price of $7.45 billion.

“The current SEIC partners will each dilute their stakes by 50 per cent to accommodate this transaction, with a proportionate share of the purchase price.

“Shell will retain a 27.5 per cent stake, with Mitsui and Mitsubishi holding 12.5 per cent and 10 per cent stakes, respectively,” the statement added.

Sakhalin Energy has been under pressure from environmental regulators for months. Analysts have interpreted the environmental campaign as a negotiating tactic to help Gazprom gain the best possible terms.—AFP