Gazprom and Shell sign Memorandum of Understanding to swap shares in Zapolyarnoye-Necomian and Sakhalin-2 projects
Posted: 11 July 2005
Alexey Miller, Chairman of the Management Committee of Gazprom, and Jeroen van der Veer, Chief Executive of the Royal Dutch/Shell Group of Companies, signed a Memorandum of Understanding in London today regarding a swap of shares in Zapolyarnoye-Neocomian and Sakhalin-II projects.
The swap is strategically important to both parties. The Memorandum of Understanding sets out the high level principles of a transaction through which Gazprom would acquire up to 25 per cent plus one share in the Sakhalin II venture, and Shell would acquire a 50 per cent interest in the Zapolyarnoye Neocomian field. The difference in value, to be defined by the parties, will be compensated through a package of cash and other assets to be agreed by the parties.
Pr eparation for the execution of the swap will be coordinated by a steering committee and joint working groups. The steering committee will consist, on principles of parity, of representatives of Gazprom and Shell. According to the Memorandum, the parties intend to commence due diligence and evaluation on their respective assets and finalize the definitive arrangements for the transaction in 2006.
“In pursuit of its strategy, Gazprom becomes a player in the LNG sector and enters new markets. The document signed today opens the way for Gazprom to become in the nearest future a large shareholder of a fast growing project for hydrocarbons development, LNG production and sale to strategic markets in North America and Asia-Pacific Region," said Alexey Miller after the signing ceremony.
“We welcome Gazprom as a great Russian partner in the Sakhalin II project and are confident Gazprom will make significant contributions towards maximizing the long term value of the project. Joint development of the Zapolyarnoye-Neocomian field will build on our position in Western Siberia , where we already have our successful Salym project. Today strengthens the good relationship between Shell and Gazprom and is a basis for further cooperation on integrated gas projects both in Russia and internationally,” said Jeroen van der Veer.
Posted by Editor Pipeline Magazine
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