Royal Dutch Shell may lose management control of Sakhalin Energy

Royal Dutch Shell PLC could lose management control of Sakhalin Energy, the Russian company which runs the giant Sakhalin project in eastern Siberia, according to The Sunday Telegraph.

The newspaper did not name its source, but said under an agreement signed last year a Gazprom appointee could end up running the project.
The newspaper said it is understood that as part of the agreement, both Gazprom and Shell will now appoint executive directors. While there is expected to be a balance in the appointments — there are six directors — a Gazprom appointee could end up running the company. A final agreement is expected to be signed by the end of this year, it added.

The newspaper said any loss of control would be a further blow to Shell after it was forced to cede majority ownership of the company to state-owned gas monopoly Gazprom last year.

Forbes