Shell and Rosneft sign agreement

9th July 2007, Comments 0 comments

9 July 2007, AMSTERDAM (AP) - Royal Dutch Shell PLC and Russia's OAO Rosneft have signed an agreement setting the legal framework for future cooperation, Shell said Monday.

9 July 2007

AMSTERDAM (AP) - Royal Dutch Shell PLC and Russia's OAO Rosneft have signed an agreement setting the legal framework for future cooperation, Shell said Monday.

Although the agreement doesn't have any specific project attached, it lays out "the basic principles of strategic cooperation" between the two and "lays the foundation for a long-term cooperation between Shell and Rosneft both in Russia and elsewhere."

A spokeswoman for Shell in London said the agreements could be on developing both oil and gas projects, and in both production and refining.

"Russia is a strategic growth area for Shell and we are committed to developing our business in cooperation with Russian companies across the entire range of the energy business," Shell Chief Executive Jeroen van der Veer said in a statement.

It's not surprising Shell wants to set the ground rules for cooperation with Rosneft in advance.

Last year, Shell agreed to sell half of its 55-percent stake in the Sakhalin island project to Russia's OAO Gazprom for US$4.1 billion, under heavy pressure from the Russian government. Shell is now a minority partner in the project, with 27.5 percent. Exact terms of the negotiation have not been disclosed but are presumed to have been unfavourable for Shell.

The companies said their abilities were complementary, with Shell bringing technological ability to table and "Rosneft's strengths and experience on the Russian market," Van der Veer said. "We look forward to successful cooperation with Rosneft, one of the leaders of the Russian oil and gas sector."

[Copyright AP 2007]

Subject: Dutch news

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