Gazprom plans to buy half of Sakhalin-2 -chairman
Source: Reuters
(Adds more from Medvedev) MOSCOW, Dec 12 (Reuters) - Russian gas export monopoly Gazprom <GAZP.MM> plans to buy around 50 percent of the Shell-led <RDSa.L> Sakhalin-2 oil and gas project for cash and assets, its chairman, Dmitry Medvedev, said on Tuesday. "The question of the share is an important one, but it's not the main issue," Medvedev told reporters in Moscow. "It could be 50 percent or a little less. The question is about how to estimate the costs and configure the business." Industry sources told Reuters on Monday that Shell had offered to cede control of Sakhalin-2 to Gazprom after doubling its estimate of project costs to $22 billion. Shell, which is operator of Sakhalin-2, the world's largest liquefied natural gas project, and now has a 55 percent stake, is prepared to reduce the stake to a blocking minority of at least 25 percent, the sources said. Japanese partners Mitsui & Co <8031.T>. and Mitsubishi <8058.T>, with stakes of 25 percent and 20 percent, may also reduce their holdings by 10 percent each to allow Gazprom to obtain majority ownership control. Medvedev, who is also first deputy prime minister, said talks were progressing well. "The talks are going quickly and we can hope to close a deal soon," he told a briefing for foreign news organisations. "The two sides are close to reaching an agreement over how Gazprom can enter this project." He confirmed that Gazprom was considering paying both cash and assets for a stake in Sakhalin-2. "We are looking at all options ranging from cash to an asset swap. Gazprom's basic approach to LNG projects is to swap assets with its partners," Medvedev said.
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