If Putin sticks to his stance on the issue analysts believe that Shell and its partners will see their profits cut sharply. "This would be another blow for Shell in Russia.... We estimate it will further depress the project IRR (internal rate of return) from an already low 12 percent to 8.5 percent," analysts at Citigroup said.
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Putin Unsatisfied By Shell's Work In Russia
During an official visit in the Netherlands, Putin criticized the group
The Russian President Vladimir Putin has met with the executives of the Anglo-Dutch energy giant Royal Dutch Shell, where they discussed a potentially serious blow to the company's future profitability in Russia.
During an official visit in the Netherlands, Putin criticized the group for massive cost overruns at its oil and gas project Sakhalin-2 in the Russian Far East.
Putin told the group's chief executive Jeroen van der Veer the Kremlin would not allow the energy titan to double its investment to $20bn as it has requested.
If Putin sticks to his stance on the issue analysts believe that Shell and its partners will see their profits cut sharply. "This would be another blow for Shell in Russia.... We estimate it will further depress the project IRR (internal rate of return) from an already low 12 percent to 8.5 percent," analysts at Citigroup said.
If Putin sticks to his stance on the issue analysts believe that Shell and its partners will see their profits cut sharply. "This would be another blow for Shell in Russia.... We estimate it will further depress the project IRR (internal rate of return) from an already low 12 percent to 8.5 percent," analysts at Citigroup said.
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