Oil Giant Shell Terminates Latest Partnership Agreement With Rosneft

Details.

Anglo-Dutch oil concern Shell plans to terminate its partnership with Rosneft, in which the companies jointly owned a stake in a pipeline from Kazakhstan, the Caspian Pipeline Consortium (CPC). Shell wants to retain a stake in the CPC but will not co-own it with the Russian oil company under sanctions, knowledgeable sources told Bloomberg. Earlier this week, Russian President Vladimir Putin authorized the two oil companies to do deals with their common venture. The Kremlin did not provide an explanation for Putin's authorization.

According to the company's website, Shell's total stake in the CPC is 7.4%. It includes 3.75% through a joint venture with Rosneft, 1.75% through direct participation and 2% through a subsidiary BG Overseas Holding. According to the sources, Shell has no plans to withdraw from the entire CPC project. In addition to Rosneft, the project's shareholders include Lukoil, which has also been hit by blocking U.S. sanctions.

The CPC delivers Kazakh oil to the Black Sea coast via Russia. The project's infrastructure has been repeatedly attacked by Ukrainian drones in recent months. The strikes have led to temporary stoppages and reduced oil loading, and the latest attack closed one of three CPC berths key to the operation of the venture. Kazakhstan's Foreign Ministry said it had been in contact with Ukrainian officials through diplomatic channels in connection with the incidents. The country's authorities also condemned the attack as it undermines exports.

Shell is pulling out of one of its last major projects in Russia. Earlier, billionaire Gennady Timchenko, who is close to Putin, took a 50% stake in Salym Petroleum Development (SPD), a company producing from fields in Western Siberia, Kommersant reported. The stake in SPD was transferred to it in 2023 from Shell.

In June 2022, the Russian authorities decided to create a new Russian operator of Sakhalin-2, to which all rights and obligations of the previous one were transferred. Shell has left the project. Its 27.5% stake for 94.8 billion rubles went to Gazprom's structure - LLC "Sakhalin Project".

Shell in its statements for the first quarter of 2022 recognized the costs of leaving Russian assets at the level of $3.9 billion, the company said. All losses could total up to $5 billion.The largest loss was the loss of a stake in the Sakhalin-2 project ($1.6 billion loss), while another $1.13 billion was the cost of lending to the decimated Nord Stream 2 project.

You can support the website Charter97.org

MULTI-CURRENCY ACCOUNT FOR ASSISTANCE:

Bank's name: Bank Millennium S.A.
Address: ul. Stanislawa Zaryna, 2A, 02-593, Warszawa
IBAN: PL97116022020000000216711123
SWIFT: BIGBPLPW
Name of the account holder: Fundacja “KARTA ‘97”
Purpose/title of payment: Donation for statuary aims

You can contact us by the e-mail [email protected]