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Global terror

Sakhalin partners hit by $3.6bn costs

By Arkady Ostrovsky in Moscow and Ed Crooks in London

Published: December 28 2006 18:44 | Last updated: December 28 2006 18:44

Royal Dutch Shell and its two Japanese partners are to be made to share the burden of the huge cost overruns of Sakhalin-2, it emerged on Thursday, in news that cast a less favourable light on their deal to cede control of the project to Gazprom.

Just days after confirming that Russia would pay the companies $7.45bn to establish its controlling stake in the project, the government said it would require the three foreign owners to meet $3.6bn of the additional costs of Sakhalin-2 themselves.

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