On Monday, the UK-based oil company said it would give up its 27.5% stake in the Sakhalin-2 liquefied natural gas facility, its 50% stake in a project to develop the Salem fields in West Siberia and its 50% stake in an exploration project in Gidan Peninsula in northwestern Siberia.
“Our decision to exit is a decision we make with conviction,” Van Burden said. We cannot – and will not – stand idly by.”
Shell earned about $700 million in 2021 from the Sakhalin and Saleem joint ventures. It valued its interests in Russia at about $3 billion at the end of the year, and the company said abandoning Gazprom’s projects would likely result in impairment charges.
The company was one of five companies that provided 50% of financing and guarantees for the estimated cost of 9.5 billion euros ($10.6 billion) to build the Gazprom Nord Stream 2 pipeline under the Baltic Sea between Russia and Germany. The project effectively came to a halt last week when German Chancellor Olaf Schulz said the country would halt certification of the pipeline.
Its subsidiary, Exxon Neftegas Limited, owns a 30% stake in Sakhalin-1 – a huge oil and natural gas project located off Sakhalin Island in the Russian Far East. It has operated the project since 1995 on behalf of a consortium that includes Japanese and Indian partners, as well as two Rosneft subsidiaries.
– Chris Liakos contributed to this article.