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Article: Financial Mess: Putin Says Shell's Sakhalin Overruns Are Unacceptable.
- Article from:
- NEFTE Compass
- Article date:
- November 2, 2005
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Royal Dutch Shell's controversial Sakhalin-2 project, where costs have doubled to a staggering $20 billion, is back in the limelight once again.
During an official visit to the Netherlands, President Vladimir Putin criticized the skyrocketing budget of the project on the Russian Pacific shelf, while the Russian government representatives on the Sakhalin-2 supervisory board demanded detailed information on the overruns. To crown it all, a parliamentary watchdog, the Audit Chamber, supported by Sakhalin deputies, has called for the cancellation of the scheme's production sharing agreement (PSA) and the appointment of new investors.
Observers say that the ...