Gazprom: Sakhalin-2 Worth Needs To Be Increased

Russian gas monopoly Gazprom said on Friday it considered Shell?s assets on Sakhalin to be below their worth, after the British company doubled the project?s cost estimates this week to $20 billion.

Shell raised the cost estimate for Sakhalin-2 on Tuesday, and postponed the first LNG shipment from the end of 2007 to summer 2008.

?The need to increase capital spending and the delay in the first LNG shipment from the Sakhalin-2 project will certainly lead to a downward revision of Shell?s assets value (in the swap deal),? the head of Gazprom?s export arm Gazexport, Alexander Medvedev, said.