Putin invites Shell to join Sakhalin 3, 4 gas projects

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Russian Prime Minister Vladimir Putin has invited Royal Dutch Shell to participate in Sakhalin-3 and Sakhalin-4 natural gas projects despite Shell giving up control of the Russia's first LNG plant, Sakhalin-2 project under government pressure in 2006.

SHOWS: NOVO-OGARYEVO, RUSSIA(JUNE 27, 2009)(RU-24 - NO ACCESS RUSSIA)

1. WIDE OF RUSSIAN PRIME MINISTER VLADIMIR PUTIN TALKS WITH ROYAL DUTCH SHELL CHIEF EXECUTIVE JEROEN VAN DER VEER

2. ROYAL DUTCH SHELL CHIEF EXECUTIVE JEROEN VAN DER VEER

3. RUSSIAN PRIME MINISTER VLADIMIR PUTIN AT TALKS

4. (SOUNDBITE)(Russia) RUSSIAN PRIME MINISTER VLADIMIR PUTIN, SAYING:

"We are prepared to pursue cooperation further with your company having in mind Sakhalin-3 and Sakhalin-4."

5. TALKS INN PROGRESS

6. (SOUNDBITE)(Russia) RUSSIAN PRIME MINISTER VLADIMIR PUTIN, SAYING:

"As for Sakhalin-3 and Sakhalin-4 projects these require offshore production in difficult deep sea areas where your experience will be very valuable."

7. TALKS IN PROGRESS

STORY: Russian Prime Minister Vladimir Putin has invited Royal Dutch Shell to participate in Sakhalin-3 and Sakhalin-4 natural gas projects at a meeting with Chief Executive Jeroen van der Veer on Saturday (June 27).

"We are prepared to pursue cooperation further with your company having in mind Sakhalin-3 and Sakhalin-4," Putin said. (These) "require offshore production in difficult deep sea areas where your experience will be very valuable," Putin said.

In February, Shell helped launch the $22 billion Sakhalin-2 liquefied natural gas project, led by Gazprom, on the Pacific island of Sakhalin. Gazprom said already that companies with which it had worked on Sakhalin-2 would get preference for Sakhalin-3.

During their talks van der Veer told Putin that Shell is ready to work quickly and expected investments start to flow again, adding this was a good signal for Russia and for Shell.

Russia's first LNG plant, Sakhalin-2, became symbolic of the Kremlin's drive to reassert control over its natural resources after Shell ceded control of the project to Gazprom under government pressure to lower the budget and reduce its holding.