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UPDATE 1-Shell says in talks with Gazprom on Yuzhno-Kirinskoye gas field

Wed, 30th Sep 2015 08:20

(Updates with more quotes, context)

YUZHNO-SAKHALINSK, Russia, Sept 30 (Reuters) - Energy majorShell is in talks to join Russia's state-controlledGazprom in tapping the Yuzhno-Kirinskoye gas fieldoffshore Russia's Sakhalin island in the Pacific, the head ofShell's operations in the country said on Wednesday.

"There are many things we talk about with Gazprom. And, ofcourse, we talk about that," Olivier Lazare told journalists onthe sidelines of an industry conference.

Last month, the United States restricted exports, re-exportsand transfers of technology and equipment to theYuzhno-Kirinskoye field. The sanctions wereimposed just weeks after media cited Shell officials as sayingthe firm was considering Yuzhno-Kirinskoye as part of an assetswap deal with Gazprom, announced in June.

Lazare said Shell was complying with the sanctions, but"(we) don't change (plans) every five minutes".

"We are continuing at the same pace. The approach is thesame," he said of Yuzhno-Kirinskoye, which, according toGazprom's plans, is set to be put upstream in 2018 and needsdrilling machinery not produced in Russia.

On Tuesday, Gazprom's deputy CEO Alexander Medvedev said ina Reuters interview the gas field would feed the Sakhalin-2liquefied natural gas plant expansion - a Gazprom/Shell jointventure - as well as a pipeline to China from Sakhalin. (Reporting by Denis Pinchuk; Writing by Vladimir Soldatkin;Editing by Alexander Winning and Dale Hudson)

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