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national | consumer issues | news report

Wednesday December 13, 2006 12:37

by Vlad Putin

getting all that gas off Shell

Bertie+Putin

Dublin. Dec 13. Shell Corrib gas project in Ireland, said pressure from the Irish authorities was beginning to threaten the venture's timetable.

"The activity of the regulatory bodies who are slowing down the process of getting the pipeline laid are beginning to have an effect on the project," they said.

"In January we are due to start laying pipe at the site, but for more than two months we haven't been able to get near it."

"The Corrib timetable is no longer realistic. It will be a serious factor in keeping to project deadlines."
Shell is fighting a rearguard action against attempts by the Dublin government to seize control of the gas project.

They say if Putin can do it, so can they.

"There's been a lot of reporting that we've thrown in the white flag," Shell's Irish spokesman said. "The negotiations have not been concluded, contrary to what's been said. There are a number of options that are being considered."

At the Dublin head office company officials said: "No single element [of this deal] can be agreed in isolation from the whole. Shell and fellow investors expect to be treated equitably. There are a number of options under consideration to achieve equitable value balance and it must be remembered that we did pass around a number of large brown envelopes."

Industry insiders said the statement was meant to underline that Shell would not agree to cut its stake in Corrib gas and give it to Berite’s cronies at a discount and certainly not without an Irish promise to halt the assault on its environmental record and an agreement on how to deal with cost overruns.

Bertie’s cronies confirmed yesterday that the Shell was close to a deal that would bring the boys a large stake in the $20bn Shell-led gas development scheme in Ireland’s far West.
They told a press conference in Dublin that an announcement was imminent.

"The two sides are close to reaching an agreement over how Bertie’s cronies can enter this project," said Shell.

Shell could settle for less than a 50% stake: "As far as the size of the stake is concerned, it is important but not critically important," he said.

Shell has accepted it will have to reduce its 55% stake down to nearer 25% with its Irish partners getting the bigger share. Prime Minister Ahern has said he wants the state to keep majority control over strategic energy resources, and he appears keen to unpick some deals that it made with Shell in the 1980s after Ray Burke accepted a Shell envelope.

The production sharing agreement from that era, which means Shell and its partners can recover all project costs and profits and giving nothing to the Irish government, is considered unfair by Mr Ahern’s advisers.

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