Shell to sell Russian investments due to Ukraine conflict

[Hoodat]

Shell to sell Russian investments due to Ukraine conflict

6 hours ago

Shell is to end all of its joint ventures with the Russian energy company Gazprom following the invasion of Ukraine.

The move will include the oil giant's 27.5% stake in a major liquefied natural gas plant.

Shell's chief executive, Ben van Beurden, said the company is "shocked by the loss of life in Ukraine".

It follows similar moves by BP, which is to offload its share in Russian state-owned oil firm Rosneft.

Shell will quit the flagship Sakhalin II facility, which is 50% owned and operated by Gazprom.

It will also sell its 50% stake in two Siberian oilfield projects, as well as end its involvement in the Nord Stream 2 gas pipeline from Russia to Germany, which it helped finance among a mix of other companies. The 1,200km pipeline under the Baltic Sea had already been put on hold by German ministers.

https://www.bbc.com/news/business-60564265


Meanwhile, the US continues to buy Russian oil.

[Hoodat]

BP to offload stake in Rosneft amid Ukraine conflict

1 day ago

BP is to offload its 19.75% stake in Russian state-owned oil firm Rosneft after Russia's "act of aggression in Ukraine".

The oil giant had come under pressure from the UK government to make the move since Thursday's invasion.

It has held the shareholding in the Russian company since 2013.

Meanwhile, Norwegian energy giant Equinor says it will start the process of divesting from its joint ventures in Russia.

BP chief executive Bernard Looney has resigned "with immediate effect" from the Rosneft board, as has fellow BP-nominated director Bob Dudley.  .  .

https://www.bbc.com/news/business-60548382

[Wingnut]

A cornered animal is a very dangerous animal. 

[Smokin Joe]

A cornered animal is a very dangerous animal.

True, but sometimes you gotta do what you gotta do. 

[IsailedawayfromFR]

Sheil is in the tank for the climate change crowd and was selling off its hydrocarbon businesses around the world.

And the EU is considering now a windfall profits tax on major oil companies.

Have you looked at the exploding stock price of oil companies here lately due to higher crude and natural gas prices?

Will be used as a bludgeon by the leftists to impose windfall profits here as well, which will further reduce out abilities to drill our way out of it.

[DefiantMassRINO]

The Russians need to choose for themselves.  Today, Ukraine.  Tomorrow, Poland.  Next week, Finland.

[catfish1957]

A $95B company in market cap  taking $25B hit?  Yowch!!!!!

I am guessing they are thinking they will get some form of compensation later.  The bad news is it might be in Rubles.

[IsailedawayfromFR]

A $95B company in market cap  taking $25B hit?  Yowch!!!!!

I am guessing they are thinking they will get some form of compensation later.  The bad news is it might be in Rubles.

Exxon just announced its abandonment of its Russian interests as well.

Likely a huge writedown there coming.

[Smokin Joe]

Majors pulling out of Russian projects means the Russians will lose the backdoor funding they might get from international conglomerates who were involved in those projects. Obviously, the current wind is blowing hard against relying on Russia for energy in Europe.

There is likely better money to be made elsewhere, and the coming political uncertainties in Russia don't look good for the short term. Countries run by dictators have a nasty habit of nationalizing their revenue generating natural resource assets, and for the moment that uncertainty makes the outlook for a good ROI shaky.

Libya, Venezuela, and others have pulled that stunt in the past. These are just the big rats skipping down the lines to the dock.

[catfish1957]

Majors pulling out of Russian projects means the Russians will lose the backdoor funding they might get from international conglomerates who were involved in those projects. Obviously, the current wind is blowing hard against relying on Russia for energy in Europe.

There is likely better money to be made elsewhere, and the coming political uncertainties in Russia don't look good for the short term. Countries run by dictators have a nasty habit of nationalizing their revenue generating natural resource assets, and for the moment that uncertainty makes the outlook for a good ROI shaky.

Libya, Venezuela, and others have pulled that stunt in the past. These are just the big rats skipping down the lines to the dock.

@Smokin Joe

These ventures have been in the works for decades.  Not only are there financial implications like you said, but there is the issue and concern Russia will have with petrochemical expertise to safely and soundly run these operations.   And at every angle of that I might add.

Even back the early '10's before I retired, I lost staff to the  Rosneft, ,and some of the best I might add.   To a person, these told me that the quality of base work strength of these Eastern Russians was not good.  How much of that has changed in 10 years, I can't say.  But if you take the example of the middle east......   "Never" might be on Alex Trebek's board.

[catfish1957]

fyi...

WTI @ $111.30/bbl at this exact moment, up 7.5% since yesterday.  A 14 year high. 

[Hoodat]

fyi...

WTI @ $111.30/bbl at this exact moment, up 7.5% since yesterday.  A 14 year high.

                                             

[Hoodat]

Exxon just announced its abandonment of its Russian interests as well.

Likely a huge writedown there coming.

Exxon is great at getting oil out of the ground, but they suck at finding it.  Significant move for them since they don't have much reserve to fall back on.  Exxon should merge with Chevron.

[catfish1957]

                                             

Wonder how the sleazy MSM is going to sugarcoat the fact that folks aren't going to have enough money to fuel their cars for their commute.  Talk about a supply chain crisis.

[catfish1957]

Exxon is great at getting oil out of the ground, but they suck at finding it.  Significant move for them since they don't have much reserve to fall back on.  Exxon should merge with Chevron.

Exxon's really not bad at it, it is that the fact they  are hamstrung on restrictive management systems at every aspect of their business.  These systems are placed on a mantle above innovation.  And that has cost them through the years.  In both retaining great talent and overall company performance.

Merger?  that was actively but briefly discussed during the '20 crash, as oil prices and demand plummeted during the pandemic.  In that panic, neither could get at toe hold of control, and believe me....   these are hardened negotiators.  Then add the fact, would this have gotten past FTC muster?....  I doubt it.

I just don't see that perfect storm happening again in my lifetime, even with the envio-whacko agenda.

[IsailedawayfromFR]

fyi...

WTI @ $111.30/bbl at this exact moment, up 7.5% since yesterday.  A 14 year high.

But Joe still refuses to permit Americans to get access to their own oil.

Instead, he is likely getting his staff to prepare for Windfall Profits Taxes on oil companies

[Smokin Joe]

@Smokin Joe

These ventures have been in the works for decades.  Not only are there financial implications like you said, but there is the issue and concern Russia will have with petrochemical expertise to safely and soundly run these operations.   And at every angle of that I might add.

Even back the early '10's before I retired, I lost staff to the  Rosneft, ,and some of the best I might add.   To a person, these told me that the quality of base work strength of these Eastern Russians was not good.  How much of that has changed in 10 years, I can't say.  But if you take the example of the middle east......   "Never" might be on Alex Trebek's board.

A directional driller I worked with years ago spoke of his time working in Russia,  and he related similar experiences with the quality of work over there and that safety and environmental concerns lagged far behind ours in the US. So much of what the government has fits over here would not even be noticed there. Again, I have no knowledge of how things may have changed since then, but their government there is prone to inertia, and not sympathetic to protesters...

[IsailedawayfromFR]

Exxon is great at getting oil out of the ground, but they suck at finding it.  Significant move for them since they don't have much reserve to fall back on.  Exxon should merge with Chevron.

Exxon made the last great discovery on the planet in Guyana.  10 billion bbls

I agree historically CVX is the better oil finder, but on that one Exxon excels.

BTW, I worked in both companies in Exploration

[catfish1957]

But Joe still refuses to permit Americans to get access to their own oil.

Instead, he is likely getting his staff to prepare for Windfall Profits Taxes on oil companies

That's when write-offs like Rosneft will come in handy.  Two can play that f'n game.

[Smokin Joe]

Wonder how the sleazy MSM is going to sugarcoat the fact that folks aren't going to have enough money to fuel their cars for their commute.  Talk about a supply chain crisis.

They will just tell people how much they could save on gas if they bought an electric...