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Shell To Continue Partnership With Gazprom

Shell will discuss further cooperation with Gazprom on energy projects in Russia's Far East, its chief executive said

Royal Dutch Shell CEO Jeroen van der Veer told Reuters in an interview the company would discuss more projects with Russian state-controlled Gazprom after launching the $22 billion Sakhalin-2 liquefied natural gas project on Wednesday.

Shell ceded control of the project to Gazprom after the project's budget doubled and the company came under state pressure to reduce its holding.

But van der Veer said the Russian Far East was within Shell and Gazprom's "area of mutual interests."

Gazprom Deputy Chief Executive Alexander Medvedev said the company was considering the interest of Shell and its Japanese partners in Sakhalin-2, Mitsui and Mitsubishi in potential LNG projects on Russia's Arctic peninsula of Yamal.