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Shell Changes Its
Russian Head: Friday 18 November 2005
John
Barry, who has been Shell’s Country Chairman in Russia
for three years, is leaving the position to become the
company’s vice president for oil production from unconventional
resources and development of oil recovery technologies. He gave
an interview for
Kommersant before leaving Moscow.
Speaking about Shell’s suggestions to raise the estimate of
expenditures to $20 billion from $12 billion for the Sakhalin-2
project Mr. Barry said that once they had started extracting on
the Sakhalin shelf it became evident that expenditures had to be
increased. Mr. Barry also mentioned external reasons for the
rise such as general price hikes on the raw materials market.
“Sakhalin-2 is a long-term project, therefore changes during its
implemented has a great effect on expenses.” The head of Shell’s
Russian unit reported that the company had sent on September 15
the project’s new draft budget to
the Government to be considered by the task force of the
advisory board on October 26.
Mr. Barry also breached the exchange of 50-percent stake in
Sakhalin-2 with
Gazprom for the Zapolyarnoye-neokom company in connection
with the rise in expenditures. He said the company had to
announce an increase in expenditures on Sakhalin-2 a week after
they had signed the memorandum of agreement with Gazprom since
rules on the disclosure of information on international stock
exchanges bound them to. Under the agreement with Gazprom, Shell
is now to check the assets to be exchanged.
John Barry did not rule out Shell’s participation in other
projects in Russia and called the Western Siberia a very
promising region.
by www.kommersant.com
Russian Article as of Nov. 18, 2005
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