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Article: Putin slams soaring costs at Sakhalin LNG.
- Article from:
- International Petroleum Finance
- Article date:
- November 1, 2005
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Russia's controversial Royal Dutch Shell-led Sakhalin-2 liquefied natural gas (LNG) project, where costs have doubled to a staggering $20 billion, is back in the limelight once again.
During an official visit to the Netherlands last month, President Vladimir Putin criticized the project's skyrocketing budget, while the Russian government representatives on the Sakhalin-2 supervisory board demanded detailed information on the overruns (IPF Aug.,p1). 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.
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