Shell may sell part of its Sakhalin-II stake to KOGAS

Shell has suggested that South Korea's Korea Gas Corp (KOGAS), a major gas importer, buy part of Shell's share in the Sakhalin-II project. Shell intends to ensure itself a stable market for gas produced under that project. The company owns 55 % of Sakhalin Energy, the operator of the Sakhalin-II project.
Gas reserves at the Lunskoye deposit, which is being developed within the framework of the project, have been estimated at 408 bn cm. Production is scheduled to begin in 2006, but until then Sakhalin-II participants are due to invest around $ 8 bn in the second phase of the project.