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Shell gives Gazprom 25 per cent stake in Sakhalin project
London: The energy group Shell has signed a deal on Wednesday with its Russian rival Gazprom, which will enable a swap of onshore and offshore gas assets in western Siberia.

Under the deal, which is to be finalised next year, Gazprom is obtaining just over a quarter of Sakhalin-2, the world's largest liquefied natural gas project, while Shell will receive a 50% stake in another field, Zapolyarnoye Neocomian.

Sakhalin-2, off the east coast of Russia and north of Japan, is estimated by analysts to be one of Shell's most valuable assets as it lies on the doorstep of some of Asia's fastest-growing economies.
But production has yet to start and the project has come in for fierce criticism from environmental campaigners.

Just last month the European Bank for Reconstruction and Development refused to sign off a loan to help fund the $12bn (£6.8bn) oil and gas project until environmental concerns are resolved. Shell has already been forced to alter the route of a pipeline to help ensure the survival of the rare western grey whale.

The Anglo-Dutch group owns 55% of Sakhalin-2, with Japan's Mitsui owning a quarter and Mitsubishi the remaining 20%.

Zapolyarnoye in western Siberia, meanwhile, produces about 100bn cubic metres of gas a year.
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