Shell announces exit from Russian joint ventures

Published by Nicholas Woodroof, Editor
Oilfield Technology, Tuesday, 01 March 2022 08:45

Shell has announced its intention to exit its joint ventures (JVs) with Gazprom and related entities, including its 27.5% stake in the Sakhalin-II LNG facility, its 50% stake in the Salym Petroleum Development, which is developing the Salym fields in the Khanty Mansiysk Autonomous District of western Siberia, and the Gydan energy venture to explore and develop blocks in the Gydan peninsula, in north-western Siberia. Shell also intends to end its involvement in the Nord Stream 2 pipeline project.

At the end of 2021, Shell had around US$3 billion in non-current assets in these ventures in Russia. The company expects that the decision to start the process of exiting JVs with Gazprom and related entities will impact the book value of Shell’s Russia assets and lead to impairments.

“We are shocked by the loss of life in Ukraine, which we deplore, resulting from a senseless act of military aggression which threatens European security,” said Shell’s CEO, Ben van Beurden.

“Our decision to exit is one we take with conviction,” said van Beurden. “We cannot – and we will not – stand by. Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia. In discussion with governments around the world, we will also work through the detailed business implications, including the importance of secure energy supplies to Europe and other markets, in compliance with relevant sanctions.”

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Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/01032022/shell-announces-exit-from-russian-joint-ventures/

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