Shell Venture to Pursue Russian Oil Project:...

Shell Venture to Pursue Russian Oil Project: Royal Dutch/Shell Group said it formed a joint venture with Aonk Evikhon of Russia to pursue the $10-billion development of an oil deposit in western Siberia whose reserves are estimated at 700 million barrels. The venture with Aonk Evikhon has been in the works since 1993, when the companies acquired rights to a group of fields call Salym. Shell said peak output could reach 120,000 barrels a day. Shell also hopes to develop natural gas project on the Sakhalin islands north of Japan. Shell said the partners could decide in the next few months whether to proceed with the project--after the government and Shell agree on exactly how revenue from the oil produced would be taxed. The 50-50 joint venture would be called Salym Petroleum Development.