Shell and O&G majors count cost of pulling out of Russia

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Shell faces writedowns on $400 million (€365 million) in Russian downstream assets having announced $3 billion (€2.7 billion) worth of other projects previously.
The oil and gas major announced on February 28 that it would quit its ventures in Russia with Gazprom and related entities including the flagship Sakhalin 2 LNG plant and the Nord Stream 2 pipeline project.
"It is expected that these decisions will impact the carrying value of the related assets and lead to recognition of impairments in 2022," Shell said in its annual report.
The downstream assets come on top of $3 billion mentioned in its February 28 announcement, a company spokesperson said.
Shell's production from Russian oil and gas projects stood at 140,000 bpd of oil equivalent compared with around 2.2 MMbpd of oil equivalent total volumes for sale, according to the report.
Shell's writedowns come amid a mass exodus of western oil majors. BP is facing a $2.5 billion (€2.3 billion) writedown for its planned divestment of Russian assets.
France's TotalEnergies has said it is sticking with its Russian investments.

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