May 16, 2022

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Shell follows BP out of Russia as oil companies ditch Putin

Shell follows BP out of Russia as oil companies ditch Putin

On Monday, the UK-based oil company said it was giving up its 27.5% stake in the Sakhalin-2 liquefied natural gas facility, its 50% stake in a project to develop the Salem fields in West Siberia and its 50% stake in an exploration project in Gedan Peninsula in northwestern Siberia.

“We are shocked by the loss of life in Ukraine, which we regret as a result of a senseless act of military aggression that threatens European security,” he added. seashells (RDSA) CEO Ben van Beurden said in a statement.
Shell move follows BP’s (BP) On Sunday, it announced that it had given up one of the largest foreign investments for Russia by exiting from it 19.75% of Rosneft shares and associated joint ventures. Analysts said Monday that BP could incur more than $26 billion as it divests its business in the country.
Shell earned about $700 million in 2021 from the Sakhalin and Saleem joint ventures. its interests in Russia Valued at about $3 billion at the end of the year, the company said abandoning Gazprom’s projects would likely result in impairment charges.

“Our decision to exit is a decision we make with conviction,” Van Burden said. We cannot – and will not – stand idly by.”

The company was one of five companies that provided 50% of financing and guarantees for the estimated cost of 9.5 billion euros ($10.6 billion) to build the Gazprom Nord Stream 2 pipeline under the Baltic Sea between Russia and Germany. The project effectively came to a halt last week when German Chancellor Olaf Schulz said the country would halt certification of the pipeline.

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The company said in a statement on Monday that Norwegian oil and gas company Equinor will also begin to exit its joint ventures in Russia.

“We are all deeply disturbed by the invasion of Ukraine, which is a terrible setback for the world,” said Anders Opedal, Equinor’s president and CEO.

The company said it has a long-term investment of $1.2 billion in Russia by the end of 2021. It has been operating in Russia for more than 30 years and has a cooperation agreement with Rosneft.

French oil giant total energy (TTFNF) On Tuesday, he denounced Russia’s actions and said it would no longer provide capital for new projects in the country. TotalEnergies has done business in Russia for 25 years and recently helped launch a large LNG project on the Siberian coast.
Other European energy companies continue to have a presence in Russia, including Nord Stream 2’s remaining partners in France Engy (Engy)Austria OMV (OMVJF)Wintershall Dea and Germany’s Uniper, as well as Italy where are you (e).
ExxonMobil (XOM), which has been active there for more than 25 years, has reduced its presence since Russia annexed crime in 2014. But its subsidiary, Exxon Neftegas Limited, still holds a 30% stake in Sakhalin-1 – a massive oil and natural gas project off Sakhalin Island. In the Far East of Russia. It has operated the project since 1995 on behalf of a consortium that includes Japanese and Indian partners, as well as two Rosneft subsidiaries.

– Chris Liakos and Pamela Boikov contributed to this article.