Shell Eyes Russian Northern Siberian Gas Field

Dutch oil giant Shell wants to participate in the exploitation of a Russian large gas field in northern Siberia.

The Bovanenko field, owned by Russian gas giant Gazprom, could produce 250 billion cubic meters of gas a year, the report said. This is three times the gas production in the Netherlands.

Shell had a big row with Gazprom over the Sachalin 2 gas project in the past years, but relations between the two have improved remarkably. Thanks to a joint venture with Rosneft, Shell has the prospect of new oil and gas projects in Russia and hopes to be able to augment its reserves in this way.

Dutch Prime Minister Jan Peter Balkenende and Economic Affairs State Secretary Frank Heemskerk started a four-day visit to Moscowon Monday. They are accompanied by a big business delegation including Shell officials, and the primary aim is reportedly to lobby for Dutch companies in the Jamal project.