Putin welcomes oil and gas cooperation with Royal Dutch Shell in Sakhalin
Premier Putin and Shell CEO Jeroen van der Veer   /  Photo: www.daylife.com

Putin welcomes oil and gas cooperation with Royal Dutch Shell in Sakhalin

27 Jun, 06:02 PM

Prime Minister Vladimir Putin has invited Royal Dutch Shell Plc to participate in developing two oil fields on Sakhalin island, Russia's RIA news agency says.

"I expect it is quite possible to continue cooperation with Shell on other sections - Sakhalin III and Sakhalin IV," Putin said at a meeting with the oil major's CEO, Jeroen Van der Seer.

Putin said Shell had a lot of experience in the gas liquefaction sphere, "We are speaking about sections further away from the shore, at greater depths, and here your experience could be in demand," he said.

Van der Veer said in turn that Shell hoped the necessary licenses would be issued soon, and that the company was ready for work.

Shell is one of the biggest buyers of Russian oil. It is a member of the consortium that develops deposits on the Sakhalin II project and holds a stake in the Caspian Pipeline Consortium.

Shell accounts for 20% of Russia's imports of motor oil and the company has a network of filling stations in Moscow and St. Petersburg.

Shell and Sovcomflot, Russia's largest shipping company, signed a cooperation agreement on Saturday to build plants producing liquefied natural gas, including on the Yamal Peninsula in northwest Siberia. Shell also plans to charter Aframax tankers from Sovcomflot for European trade.

Tags: Sakhalin, Royal Dutch Shell, gas liquefaction sphere

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