Gazprom and Shell enter into Global Co-operation Pact

OAO Gazprom and Royal Dutch Shell have signed a protocol on strategic cooperation, which establishes basic guidelines for the companies’ broader collaboration on a global basis.

Amongst the opportunities the companies will consider are the further development of bilateral cooperation in Shell’s involvement in the exploration and production of hydrocarbons in western Siberia and the far east of Russia. Cooperation is also planned in the downstream oil products business in Russia and Europe, as well as Gazprom's participation in unspecified Shell upstream projects outside of Russia.

Commentators have remarked on the irony of ‘global co-operation” between the two players, almost four years after pressure from Russian authorities forced Shell  to halve its controlling stake in Sakhalin II and hand control to Gazprom.

Gazprom is seeking ways to reduce its dependence on selling gas to Europe where demand for gas has falling during the recession. Its market position may be further impacted from European attempts to achieve greater energy security through deregulation, the development of unconventional gas and the importation of LNG.

“This agreement is a vivid example of the mutually beneficial development of strategic partnership between the world’s largest energy companies. Ahead of us, we have new large-scale projects and growing joint presence in new markets”, said Alexei Miller, Chairman of the Gazprom Management Committee.

“This underscores the strong partnership our companies have built in recent years,” said Peter Voser, Chief Executive Officer of Royal Dutch Shell. “Russia is an important area for new energy development for Shell and I expect it will play a big role in meeting the world’s growing demand for oil and gas in the years ahead.”

Source: Shell