Gazprom and Shell discuss joint development of Sakhalin shelf

Gazprom and Shell will continue to work on the South-Kirinskoye field, fallen under US sanctions in August. The deputy chairman of the monopoly’s Board Alexander Medvedev has confirmed that it remains a resource base for the expansion of LNG plant on Sakhalin, and Shell still plans to get a stake in the asset. Gazprom hopes to manufacture equipment for subsea production, the supply of which is prohibited by the sanctions, by itself. According to the Kommersant’s information, the work with Shell for import substitution is already underway, but the Kommersant’s interlocutors and analysts doubt that it will bring quick results.

Gazprom "has actually made" the decision on construction of the third stage of the LNG plant on Sakhalin Island in partnership with Shell, despite the US sanctions against the resource base of the project, said the deputy chairman of the monopoly Alexander Medvedev. Previously Gazprom was going to finish pre-FEED in autumn and to make a final investment decision in 2017. "Even the assessment (of investments), which was made with a range of plus or minus 20%, allows us to take such decision. And we see the opportunity of only improvement in the cost during the preparation of project documentation," - said the top manager.