OREANDA-NEWS. Fitch Ratings says that Royal Dutch Shell PLC's ("Shell" 'AA+'/Stable Outlook) new proposals for state-run OAO Gazprom ('BBB- (BBB minus)'/Positive Outlook) to acquire a controlling stake in Sakhalin Energy Investment co. ("Sakhalin II"), one of the largest integrated oil-and gas developments in the world, may have an adverse impact on its reserve replacement strategy.

"However, the credit impact on Shell will depend on the form and amount of consideration it will receive from Gazprom for a 30% stake, whether Shell will continue to maintain operational control given its technical expertise in large LNG projects and the extent of changes to the hitherto very favourable terms of the respective production sharing agreement it will need to accept as part of the transaction," says Thomas Baumeister, Senior Director in Fitch's Energy team.

"It will also hinge on the extent to which Shell will experience significant reductions in its inventory of proved reserves and on whether the Russian authorities will adopt a more accommodating attitude towards Shell, once control has been transferred to Gazprom."