Sovcomflot and Shell International Trading & Shipping Company Limited (Shell) have signed a General Cooperation Agreement.
Sovcomflot and Shell International Trading & Shipping Company Limited (Shell) have signed a General Cooperation Agreement. The signing ceremony was held as part of a meeting of Russian Prime Minister Vladimir Putin with outgoing Royal Dutch Shell Chief Executive Jeroen van der Veer and Peter Voser, Mr. van de Veer's successor from July 1.
Signed by Sergey Frank, CEO of the Sovcomflot Group, and Jan Kopernicki, Shell's Vice President for Shipping, the agreement covers cooperation between the two companies in potential liquefied natural gas (LNG) shipping projects in Russia, including on the Arctic offshore. It provides for broadening of cooperation in future Sakhalin II project development, development of joint shipping solutions for natural gas fields on Yamal Peninsula, further improvement of LNG shipping technologies, including in difficult ice conditions, and development of floating storage and regasification units for gasification in remote regions of Russia.
According to Mr. Frank, Sovcomflot CEO, "The signed agreement allows to combine Shell's profound experience in the production and the transportation of liquefied natural gas with Sovcomflot's knowledge and technical potential in delivering cargos by sea in harsh ice conditions of the Arctic and Far-Eastern seas. This long-term international project is aimed at working out highly effective and ecologically safe transportation and logistical solutions for Russia's future oil and gas projects implemented in the offshore fields of the Arctic".
Mr. Kopernicki said, "Shell and Sovcomflot have for some time worked together on LNG seafarer training and through the development of the Sakhalin II project. The signing of these agreements builds on this and allows us to share our respective skills in LNG and Arctic shipping to support future Russian LNG projects.
The companies also signed oil tanker chartering deals covering the time charter of a Sovcomflot crude oil tanker for Shell International Trading & Shipping Company Limited and a Contract of Affreightment (COA) arrangement that gives Shell access to a number of Sovcomflot's fleet of modern double-hulled crude oil tankers to load and deliver crude oil cargoes in Northwest Europe.
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