Posted on 12/14/2006 2:14:34 PM PST by Tailgunner Joe
President Vladimir Putin insists he wants Russia to be a respected member of the community of nations. Why, then, does he keep doing things that remind us of the bad old days of the USSR?
Russia talks a good game about wanting more trade and investment with the West. But then it goes and does something crazy: seizing the assets of Shell Oil off Sakhalin Island. ...
Russia never had the technology to fully exploit its oil and gas reserves; it needed outside expertise. Which explains why Shell was in Sakhalin, one of Russia's most promising offshore oil sites.
But now, the Anglo-Dutch company is being elbowed out of the way by the state-owned energy group Gazprom. Shell has about 55% of the Sakhalin gas field; Japan's Mitsui and Mitsubishi have the rest. After Gazprom's move, Shell will have just 25%, Mitsui and Mitsubishi even less.
In effect, the Russian government is taking over, after Shell, Mitsui and Mitsubishi spent billions and did all the heavy lifting.
This is not an isolated incident. Russia is threatening British Petroleum's Siberian unit with the same bogus — and vague — claims of "environmental violations" it used to steal Shell's investment. ...
Shell and the others invested in Sakhalin based on the idea it would be a permanent investment — not that it would be grabbed just as it became productive. And what about the next bunch of investors you want to attract?
In this, Russia is acting more like the Soviet bully it once was than the respected member of the community of nations it claims to be.
(Excerpt) Read more at investors.com ...
they're sounding the alarm. A few years too late, but hey...
they're sounding the alarm. A few years too late, but hey...
So when did the Shell-Sakhalin project start? When were the papers signed? I thought it was during the Putin years. Where would the Russians be right now without Shell oil doing a lot of the tough work that the vodka swillers would have f***** up?
The sea of Oktuhsk(sp) is a very hydrocarbon rich area and the PSA's were very favorable to the operators but not the Russian government.
I question whether Gazprom has the technology, personnel, and ability to do it alone, as they want to, but the fact of the matter is that the resources lie in their jurisdiction and no matter how much Exxon, Statoil, or anyone else may not like it, that is the way it is.
Why didn't Putin/Gazprom kick out Shell 100%? It's obvious that they still need Shell's expertise. Shell will probably continue to do the serious work while the vodka swillers will get more of the profits. It reminds me of an Indian casino when they hire outside management that has gambling expertise. The lazy uneducated tribal members get their yearly payouts while sitting on their butts
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