Russia's Great Oil&Gas Project to be Audited by the Government

Russia?s Natural Resources Minister Yuri Trutnev said that next week the government will begin an audit of giant Sakhalin-2 oil and gas project in the Far East, which is opearted by British company Shell.

As it is already known, Russian authorities are criticizing Shell for delays and cost overruns which they say threaten national interests.

The Russian government is seeking to ensure stronger state control in the energy sector and talks are stalled on the acquisition of a stake in Sakhalin-2 by state-run natural gas monopoly Gazprom.

Sakhalin-2 is one of two projects in Russia?s Pacific offshore being developed by Western oil companies under production-sharing agreements, or PSAs, signed in the early 1990s.

Natural Resources Minister Yuri Trutnev said that Sakhalin Energy, a consortium led by Royal Dutch/Shell that runs the oil and liquefied natural gas project off the far eastern island of Sakhalin, was taking longer to start production than foreseen under the PSA.