The UK-based oil company said on Monday it would dump its 27.5% stake in the Sakhalin-2 liquefied natural gas facility, a 50% stake in the Salim deposit development project in Western Siberia and a 50% stake in the project. for research in the Gidan 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.” Shell (RDSA) CEO Ben van Beurden said in a statement.
Shell’s move follows BP (BP) announced on Sunday that it was abandoning one of Russia’s largest foreign investments, leaving its 19.75% stake in Rosneft and related joint ventures. Analysts said Monday that BP could suffer a blow of more than $ 26 billion as it withdraws from its business in the country.
Shell earned about $ 700 million in 2021 from the Sakhalin-Salim joint ventures. Its interests in Russia were estimated at about $ 3 billion at the end of the year, and the company said abandoning Gazprom’s projects would likely lead to impairment charges.
“Our decision to leave is what we accept with conviction,” van Beurden said. “We cannot – and will not – stand aside.
The company was one of five that provided 50% of the financing and guarantees for the estimated cost of 9.5 billion euros ($ 10.6 billion) for the construction of the Gazprom Nord Stream 2 gas pipeline under the Baltic Sea between Russia and Germany. The project was effectively halted last week when German Chancellor Olaf Scholz said the country would suspend certification of the pipeline.
Norwegian oil and gas company Equinor will also start leaving its joint ventures in Russia, the company said in a statement on Monday.
“We are all deeply concerned about the invasion of Ukraine, which is a terrible obstacle to the world,” said Anders Opedale, president and CEO of Equinor.
The company said it had $ 1.2 billion in long-term investments in Russia at 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 TotalEnergies (TTFNF) on Tuesday, condemned Russia’s actions and said it would no longer provide capital for new projects in the country. TotalEnergies has been doing business in Russia for 25 years and recently helped launch a major liquefied natural gas project on the Siberian coast.
Other European energy companies continue to be present in Russia, including France’s other Nord Stream 2 partners Engie (ENGIY)Austria OMV (OMVJF)the German Wintershall Dea and Uniper, as well as the Italian ones ENI (E).
ExxonMobil (XOM), which has been active there for more than 25 years, reduced its presence after Russia annexed crime in 2014. But its subsidiary, Exxon Neftegas Limited, still has a 30% stake in Sakhalin-1, a huge oil and gas project. , located near the island of Sakhalin in the Far East of Russia. He has been managing 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 Boykoff contributed to this article.
