Released March 01, 2022 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--European oil majors BP plc (NYSE:BP) (London, England), Equinor (NYSE:EQNR) (Stavanger) and Shell plc (NYSE:SHEL) (London, England) have announced plans to exit from their Russian business ventures amid Russia's invasion of Ukraine.
BP's board said it will exit its 19.75% shareholding in Russian oil-giant Rosneft, which it has held since 2013. In addition, BP chief executive officer Bernard Looney is resigning from the board of Rosneft "with immediate effect" as is its other Rosneft director, former BP group chief executive Bob Dudley. The company expects to take a charge of up to 25 billion euro (US$28 billion) related to the exit but no exact details on how BP will withdraw were available. The company has operated in Russia for more than 30 years and Rosneft accounts for roughly half of the company's oil and gas reserves and a third of its production.
"Like so many, I have been deeply shocked and saddened by the situation unfolding in Ukraine and my heart goes out to everyone affected," commented Looney. "It has caused us to fundamentally rethink BP's position with Rosneft. I am convinced that the decisions we have taken as a board are not only the right thing to do, but are also in the long-term interests of bp. Our immediate priority is caring for our great people in the region and we will do our utmost to support them. We are also looking at how bp can support the wider humanitarian effort."
BP chair, Helge Lund, added: "Russia's attack on Ukraine is an act of aggression which is having tragic consequences across the region. BP has operated in Russia for over 30 years, working with brilliant Russian colleagues. However, this military action represents a fundamental change. It has led the bp board to conclude, after a thorough process, that our involvement with Rosneft, a state-owned enterprise, simply cannot continue. We can no longer support bp representatives holding a role on the Rosneft board. The Rosneft holding is no longer aligned with bp's business and strategy and it is now the board's decision to exit bp's shareholding in Rosneft. The bp board believes these decisions are in the best long-term interests of all our shareholders."
Norway's Equinor announced that it is stopping new investments into Russia and will begin the process of exiting Equinor's Russian joint ventures. Like BP, Equinor has been operating in Russia for more than 30 years but has less exposure. Since 2012, the company entered a strategic cooperation deal with Rosneft covering several projects including the North Komsomolskoye oil field development project in West Siberia, a pilot exploration programme to assess the potential for commercial production from the Domanik limestone formation in the Samara region, and 12 exploration and production licences in Eastern Siberia.
"We are all deeply troubled by the invasion of Ukraine, which represents a terrible setback for the world, and we are thinking of all those who are suffering because of the military action," said Anders Opedal, president and chief executive officer of Equinor. "Early this week Equinor will present a commitment to contribute funding to the humanitarian effort in the region. In the current situation, we regard our position as untenable. We will now stop new investments into our Russian business, and we will start the process of exiting our joint ventures in a manner that is consistent with our values. Our top priority in this difficult situation is the safety and security of our people."
Equinor employs 70 people in Russia. In 2021, its non-current assets in Russia were valued at US$1.2 billion.
Shell's board of directors announced its intention on Monday to exit its joint ventures with Russia's Gazprom and related entities, including its 27.5% stake in the Sakhalin-II liquefied natural gas facility, its 50% stake in the Salym Petroleum Development and the Gydan energy venture. Shell said it also intends to end its involvement in the Nord Stream 2 pipeline project.
"We are shocked by the loss of life in Ukraine, which we deplore, resulting from a senseless act of military aggression which threatens European security," said Shell's chief executive officer, Ben van Beurden.
Sakhalin-II is an integrated oil and gas project located on Sakhalin island, Salym Petroleum Development is a joint venture with Gazprom Neft that is developing the Salym fields in the Khanty Mansiysk Autonomous District of western Siberia and Gydan is a joint venture to explore and develop blocks in the Gydan peninsula, in north-western Siberia.
Shell is one of five energy companies which have each committed to provide financing and guarantees for up to 10% of the estimated 9.5 billion-euro (US$10.6 billion) cost of the Nord Stream 2 natural gas pipeline project, which runs from Russia to Germanu.
Industrial Info is closely tracking the impact and potential impact that the conflict is having on current and planned projects, as well as the fallout across the industrial sectors and major companies in both Ukraine and Russia. For additional information, see February 28, 2022, article - Russia's Invasion of Ukraine Puts Both Countries' Industrial Heavyweights in Rough Waters and February 24, 2022, article--Industrial and Infrastructure Assets Targeted As Russia Invades Ukraine.
For a list of industrial plants impacted by the conflict click here.
According to Industrial Info's Global Market Intelligence, there are 334 industrial plants in Ukraine, which has a large coal mining, steel manufacturing and power generation industry.
Click on the image at right for a map of Ukraine's industrial assets using Industrial Info's GMI GeoXplorer tool.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
BP's board said it will exit its 19.75% shareholding in Russian oil-giant Rosneft, which it has held since 2013. In addition, BP chief executive officer Bernard Looney is resigning from the board of Rosneft "with immediate effect" as is its other Rosneft director, former BP group chief executive Bob Dudley. The company expects to take a charge of up to 25 billion euro (US$28 billion) related to the exit but no exact details on how BP will withdraw were available. The company has operated in Russia for more than 30 years and Rosneft accounts for roughly half of the company's oil and gas reserves and a third of its production.
"Like so many, I have been deeply shocked and saddened by the situation unfolding in Ukraine and my heart goes out to everyone affected," commented Looney. "It has caused us to fundamentally rethink BP's position with Rosneft. I am convinced that the decisions we have taken as a board are not only the right thing to do, but are also in the long-term interests of bp. Our immediate priority is caring for our great people in the region and we will do our utmost to support them. We are also looking at how bp can support the wider humanitarian effort."
BP chair, Helge Lund, added: "Russia's attack on Ukraine is an act of aggression which is having tragic consequences across the region. BP has operated in Russia for over 30 years, working with brilliant Russian colleagues. However, this military action represents a fundamental change. It has led the bp board to conclude, after a thorough process, that our involvement with Rosneft, a state-owned enterprise, simply cannot continue. We can no longer support bp representatives holding a role on the Rosneft board. The Rosneft holding is no longer aligned with bp's business and strategy and it is now the board's decision to exit bp's shareholding in Rosneft. The bp board believes these decisions are in the best long-term interests of all our shareholders."
Norway's Equinor announced that it is stopping new investments into Russia and will begin the process of exiting Equinor's Russian joint ventures. Like BP, Equinor has been operating in Russia for more than 30 years but has less exposure. Since 2012, the company entered a strategic cooperation deal with Rosneft covering several projects including the North Komsomolskoye oil field development project in West Siberia, a pilot exploration programme to assess the potential for commercial production from the Domanik limestone formation in the Samara region, and 12 exploration and production licences in Eastern Siberia.
"We are all deeply troubled by the invasion of Ukraine, which represents a terrible setback for the world, and we are thinking of all those who are suffering because of the military action," said Anders Opedal, president and chief executive officer of Equinor. "Early this week Equinor will present a commitment to contribute funding to the humanitarian effort in the region. In the current situation, we regard our position as untenable. We will now stop new investments into our Russian business, and we will start the process of exiting our joint ventures in a manner that is consistent with our values. Our top priority in this difficult situation is the safety and security of our people."
Equinor employs 70 people in Russia. In 2021, its non-current assets in Russia were valued at US$1.2 billion.
Shell's board of directors announced its intention on Monday to exit its joint ventures with Russia's Gazprom and related entities, including its 27.5% stake in the Sakhalin-II liquefied natural gas facility, its 50% stake in the Salym Petroleum Development and the Gydan energy venture. Shell said it also intends to end its involvement in the Nord Stream 2 pipeline project.
"We are shocked by the loss of life in Ukraine, which we deplore, resulting from a senseless act of military aggression which threatens European security," said Shell's chief executive officer, Ben van Beurden.
Sakhalin-II is an integrated oil and gas project located on Sakhalin island, Salym Petroleum Development is a joint venture with Gazprom Neft that is developing the Salym fields in the Khanty Mansiysk Autonomous District of western Siberia and Gydan is a joint venture to explore and develop blocks in the Gydan peninsula, in north-western Siberia.
Shell is one of five energy companies which have each committed to provide financing and guarantees for up to 10% of the estimated 9.5 billion-euro (US$10.6 billion) cost of the Nord Stream 2 natural gas pipeline project, which runs from Russia to Germanu.
Industrial Info is closely tracking the impact and potential impact that the conflict is having on current and planned projects, as well as the fallout across the industrial sectors and major companies in both Ukraine and Russia. For additional information, see February 28, 2022, article - Russia's Invasion of Ukraine Puts Both Countries' Industrial Heavyweights in Rough Waters and February 24, 2022, article--Industrial and Infrastructure Assets Targeted As Russia Invades Ukraine.
For a list of industrial plants impacted by the conflict click here.
According to Industrial Info's Global Market Intelligence, there are 334 industrial plants in Ukraine, which has a large coal mining, steel manufacturing and power generation industry.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
