Royal Dutch Shell and its partners in the $22 billion Sakhalin-2 project have accepted cash and a promise of future cooperation with Gazprom in a deal to let the Russian firm into the venture, a source close to talks between the companies said yesterday. Gazprom had originally offered Shell a share of its Zapolyarnoye field as a swap for 25 per cent of Sakhalin-2. But after the project's costs doubled, Gazprom reopened negotiations with Shell and its Japanese partners Mitsui and Mitsubishi. Both sides have said they hope to clinch a deal this week.
Shell spokesmen in London and Moscow declined to comment.