Posts under ‘Sakhalin II’

Bloomberg

Shell Walks Away From Major Russian LNG Project With Nothing

By Will Mathis: 1 September 2022 at 17:30 BST

Shell Plc will walk away from Russia’s Sakhalin-2 liquefied natural gas project with nothing after President Vladimir Putin transferred the major facility to a new operating company.

The London-based firm’s decision is the latest indication that Putin won’t allow international energy companies to realize big financial gains as they exit Russia over the invasion of Ukraine.

Shell had already written off the $1.6 billion value of its 27.5% stake in Sakhalin-2 earlier this year. T read more

This is MONEY

Shell may have to write off investment of more than £3bn in major Russian gas project after Vladimir Putin moves to seize control of site

By CALUM MUIRHEAD FOR THE DAILY MAIL

PUBLISHED: 21:57, 1 July 2022 | UPDATED: 21:57, 1 July 2022

Shell may have to write off an investment of more than £3billion in a major Russian gas project after Vladimir Putin moved to seize control of the site.

The Kremlin has drawn up plans to transfer ownership of the Sakhalin-2 plant, located in the far east of the country, to a new Russian firm citing national and economic security interests.

Putin has given the project’s backers a month to decide whether they will take a holding in the new company, meaning those that refuse could lose all their money. Shell owns nearly 28 per cent of the Sakhalin-2 plant worth around £3.4billion. read more

yahoo!finance

Putin Swoop on Gas Plant Risks Forcing Foreign Partners Out

Stephen Stapczynski and Garfield Reynolds

Fri, July 1, 2022, 10:04 a.m.

(Bloomberg) — President Vladimir Putin signed a decree to transfer rights to the Sakhalin-2 natural gas project to a new Russian company, a move that could force foreign owners including Shell Plc to abandon their investment in the facility.

The decree cites threats to Russia’s national interests and economic security, according to a statement dated June 30, issued by the Kremlin and signed by Putin. Stakeholders have one month to say whether they’ll take a holding in the new company, and those who opt out may not be fully compensated, the statement said.

The move could prove complicated for Shell, which holds a 27.5% stake in the liquefied natural gas facility in Russia’s far east. The energy giant announced it would exit the project after Russia invaded Ukraine, and also said it wouldn’t commit to any new investments in the country.

Chief Executive Officer Ben van Beurden said earlier this week that Shell is making progress selling its stake, which Wood Mackenzie estimates is worth $4.1 billion. China’s key state-run energy companies are in talks with Shell to buy its stake in the project, people familiar with the details said in April.

Shell is aware of the decree and is assessing its implications, the company said in a statement.

The world is already grappling with surging fuel prices as Putin steps up the use of gas as a weapon, and any effort by Moscow to take over energy assets could rile markets further. Most western energy firms are trying leave Russian projects, but are struggling to find willing buyers. read more

CITYA.M.

Kremlin orders seizure of gas facility which Shell has 27 per cent stake in worth £3.4bn

JACK MENDEL

Russia’s President Vladimir Putin has ordered the seizure of a gas facility in the county which UK firm Shell has a 27 per cent stake in.

The Kremlin signed a decree to take control of rights of the Sakhalin-2 plant, which will be transferred into Russian hands.

This comes as Moscow continues to come under severe economic pressure with sanctions, while countries including the UK, Germany and other EU states have been urged to stop buying fuel from Russia, amid its war against Ukraine. read more

THE NEW YORK TIMES

Putin moves to seize a large gas venture in Russia’s Far East.

Shell and two Japanese companies, Mitsui and Mitsubishi, are minority shareholders in the Sakhalin-2 joint venture.

Russia is moving to take over an important natural gas joint venture, putting the investments of Shell and two Japanese trading companies, Mitsui and Mitsubishi, at risk.

A decree issued by President Vladimir V. Putin on Thursday said the project, called Sakhalin-2, which is on Sakhalin Island in Russia’s Far East and is a key exporter of fuel to Japan, would be taken over by a new company. read more

BBC News

Russia moves to take control of Sakhalin-2 oil and gas project

1 JULY 2022

Russia has moved to take over a major oil and gas project in which Shell has a 27.5% stake.

Russian President Vladimir Putin signed a decree on Thursday to take charge of the Sakhalin-2 project.

The move could force Shell and Japan’s Mitsui and Mitsubishi to abandon their investments as the economic fallout of the Ukraine war spreads.

Oil giant Shell said: “We are aware of the decree and are assessing its implications.” read more

Reuters

Exclusive-Shell in talks with Indian consortium to sell Russian LNG plant stake -sources

By Ron Bousso and Nidhi Verma: Thu, 26 May 2022, 11:09 am

LONDON (Reuters) -Shell is in talks with a consortium of Indian energy companies to sell its stake in a major liquefied natural gas plant in Russia, three sources told Reuters, highlighting India’s willingness to step into the space left by Western companies following Moscow’s invasion of Ukraine.

The world’s third-largest oil importer and consumer has already stepped up purchases of Russian supplies since the conflict began in February, taking advantage of big discounts at a time when global oil prices have surged.

The sources said Shell has recently entered into talks with a group of Indian companies, including ONGC Videsh and Gail, over its 27.5% stake in the Sakhalin-2 LNG plant on Russia’s eastern flank.

Shell declined to comment. ONGC, Gail and other state-run Indian companies did not respond to Reuters’ request for comment.

The talks follow the British company’s plans to exit all its Russian operations, amid an exodus of Western companies from the country in response to sanctions over the Ukraine conflict. India has not explicitly condemned Moscow’s actions there.

India has snapped up cheap Russian oil, taking its share of Russian oil exports to around 10% from zero since the start of this year, according to the International Energy Agency. read more

REUTERS

Shell sells Russian retail business to Lukoil

May 12, 2022 11:22 AM GMT

May 12 (Reuters) – Russia’s second-largest oil producer Lukoil (LKOH.MM) will buy Shell’s (SHEL.L) Russian retail and lubricants businesses, the companies said on Thursday, as the British oil major moves ahead with its exit from the country following its Ukraine invasion.

The deal includes 411 retail stations, mainly located in the Central and Northwestern regions of Russia, and the Torzhok lubricants blending plant, Shell said in a statement.

“The acquisition of Shell’s high-quality businesses in Russia fits well into Lukoil’s strategy to develop its priority sales channels, including retail, as well as the lubricants business,” said Maxim Donde, a vice-president with Lukoil.

Neither Shell, nor Lukoil would not comment on the value of the deal, which still requires the approval of Russia’s anti-monopoly authorities. read more

“Under this deal, more than 350 people currently employed by Shell Neft will transfer to the new owner of this business,” Shell said. read more

Shell tightens restrictions on Russian oil buying

April 27 (Reuters) – Shell SHEL.L on Wednesday tightened its restrictions on buying Russian oil, saying it would no longer accept refined products with any Russian content, including blended fuels.

Shell last month said it would phase out buying Russian crude and its involvement in all Russian hydrocarbons from oil to natural gas, after facing an uproar over buying a Russian crude cargo in the days following Moscow’s invasion of Ukraine. read more

The Telegraph

Ukraine urges Johnson to ensure ‘not a drop’ of Russian oil reaches the UK

Shell, one of the world’s largest oil and gas companies, has pledged to withdraw from Russian oil products, but…

By Rachel Millard: 24 April 2022 • 6:46pm

Ukraine’s government has urged the UK to ensure “not a single drop of Russian oil enters the country”, as it pushed for a “total and immediate” boycott on Russian fossil fuels.

Oleg Ustenko, economic adviser to President Volodymyr Zelenskyy, said it was “no time for half measures”. It comes amid concerns Britain may adopt a definition of Russian oil that allows some Kremlin supplies into the country, even under the impending embargo. read more

Ukraine brands Shell ‘deplorable’ after accusing it of using an ‘accounting trick’ to keep buying Russian oil

By LUCY WHITE FOR THE DAILY MAIL

PUBLISHED: 21:54, 22 April 2022 | UPDATED: 09:52, 23 April 2022

Ukraine’s government has branded Shell ‘deplorable’ after accusing it of using an ‘accounting trick’ to keep buying Russian oil.

Officials in Kyiv said Western companies were continuing to ‘bankroll Putin’s war machine’ despite promising to cut ties with the Kremlin. read more

The Telegraph

‘Latvian blend’: How Russia bends the rules to keep its oil flowing

There is a growing gap between rhetoric and reality on the vast trade of Russian oil

Three Chinese energy firms are in talks to buy Shell’s stake in a huge Russian natural gas export project, a report says

Grace Dean: Fri, April 22, 2022, 12:27 PM

Chinese firms are in talks to buy Shell’s stake in a Russian natural gas export project, sources told Bloomberg.

CNOOC, CNPC, and Sinopec are in joint discussions, the sources said.

Shell and other Western energy companies are withdrawing from the Russian oil and natural gas sector.

Three Chinese state-run energy companies are in talks to buy Shell’s 27.5% stake in a huge Russian natural gas export project, Bloomberg reported, citing people with knowledge of the matter. read more

The Telegraph

Shell in talks to offload Russian business to China

James Warrington: 21 APRIL 2022 

Shell is said to be turning to Beijing as it looks to offload its stake in a major Russian gas project.

The FTSE 100 energy giant is in joint talks with Chinese state-run firms Cnooc, CNPC and Sinopec over its 27.5pc holding in the Sakhalin-2 liquefied natural gas venture.

The discussions include the potential sale of the stake to one, two or all three of the Chinese companies, though Shell is said to be open to talks with other potential buyers outside China. read more

CNBC

Oil major Shell to write off up to $5 billion in assets after exiting Russia

PUBLISHED THU, APR 7 20222:16 AM EDT

Elliot Smith@ELLIOTSMITHCNBC

Shell has announced that it will write off between $4 and $5 billion in the value of its assets after pulling out of Russia following the country’s unprecedented invasion of Ukraine.

Thursday’s announcement offers a first glimpse at the potential financial impact to Western oil majors of exiting Russia.

“For the first quarter 2022 results, the post-tax impact from impairment of non-current assets and additional charges (e.g. write-downs of receivable, expected credit losses, and onerous contracts) relating to Russia activities are expected to be $4 to $5 billion,” Shell said in a statement Thursday.

“These charges are expected to be identified and therefore will not impact Adjusted Earnings.”

Further details of the impact of ongoing developments in Ukraine will be set out in Shell’s first-quarter earnings report on May 5, the company said. read more

The Guardian

Shell chief’s pay rose by a quarter in 2021 to £6m

Ben van Beurden was paid 57 times more than median Shell worker, according to oil firm’s annual report

Jasper Jolly: Thu 10 Mar 2022 09.13 GMT

The Shell chief executive Ben van Beurden’s pay rose by a quarter in 2021 to £6m, as the fossil fuel producer benefited from soaring energy prices amid calls for a windfall tax on energy companies.

The FTSE 100 company reported record profits during 2021, thanks in part to a gas price surge in the final three months of the year amid a rebound in demand for commodities as the global economy recovered from coronavirus pandemic lockdowns. read more