Released March 10, 2022 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Shell Plc (NYSE:SHEL) has apologised publicly for buying Russian gas recently and announced its intention to "withdraw from Russian oil and gas".
The purchase was made after the company had been among the first oil and gas majors to announce plans to pull out of Russian operations following its invasion of neighbouring Ukraine. Before the purchase, the company had committed 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. It will also end its involvement in the controversial Nord Stream 2 pipeline project, led by Gazprom. For additional information, see March 1, 2022, article--BP, Equinor, Shell Pulling Out of Russia over Ukraine Invasion.
"We are acutely aware that our decision last week to purchase a cargo of Russian crude oil to be refined into products like petrol and diesel -- despite being made with security of supplies at the forefront of our thinking -- was not the right one and we are sorry," said Shell chief executive officer, Ben van Beurden. "As we have already said, we will commit profits from the limited, remaining amounts of Russian oil we will process to a dedicated fund. We will work with aid partners and humanitarian agencies over the coming days and weeks to determine where the monies from this fund are best placed to alleviate the terrible consequences that this war is having on the people of Ukraine."
He added: "Our actions to date have been guided by continuous discussions with governments about the need to disentangle society from Russian energy flows, while maintaining energy supplies. Threats today to stop pipeline flows to Europe further illustrate the difficult choices and potential consequences we face as we try to do this. Following government statements this week, I want to set out our position clearly. Unless directed by governments, we will:
Exxon Mobil Corporation (NYSE:XOM) has also announced plans to discontinue operations at the Sakhalin-1 oil and gas venture in Russia and will make no new investments in Russia. The company values its Russian oil and gas operations at more than US$4 billion. The company stated: "ExxonMobil supports the people of Ukraine as they seek to defend their freedom and determine their own future as a nation. We deplore Russia's military action that violates the territorial integrity of Ukraine and endangers its people."
For a list of industrial plants in Ukraine impacted by the conflict click here.
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: LinkedIn.
The purchase was made after the company had been among the first oil and gas majors to announce plans to pull out of Russian operations following its invasion of neighbouring Ukraine. Before the purchase, the company had committed 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. It will also end its involvement in the controversial Nord Stream 2 pipeline project, led by Gazprom. For additional information, see March 1, 2022, article--BP, Equinor, Shell Pulling Out of Russia over Ukraine Invasion.
"We are acutely aware that our decision last week to purchase a cargo of Russian crude oil to be refined into products like petrol and diesel -- despite being made with security of supplies at the forefront of our thinking -- was not the right one and we are sorry," said Shell chief executive officer, Ben van Beurden. "As we have already said, we will commit profits from the limited, remaining amounts of Russian oil we will process to a dedicated fund. We will work with aid partners and humanitarian agencies over the coming days and weeks to determine where the monies from this fund are best placed to alleviate the terrible consequences that this war is having on the people of Ukraine."
He added: "Our actions to date have been guided by continuous discussions with governments about the need to disentangle society from Russian energy flows, while maintaining energy supplies. Threats today to stop pipeline flows to Europe further illustrate the difficult choices and potential consequences we face as we try to do this. Following government statements this week, I want to set out our position clearly. Unless directed by governments, we will:
- Immediately stop buying Russian crude oil on the spot market and we will not renew term contracts.
- At the same time, in close consultation with governments, we are changing our crude oil supply chain to remove Russian volumes. We will do this as fast as possible, but the physical location and availability of alternatives mean this could take weeks to complete and will lead to reduced throughput at some of our refineries.
- We will shut our service stations, aviation fuels and lubricants operations in Russia. We will consider very carefully the safest way to do this, but the process will start immediately.
- We will start our phased withdrawal from Russian petroleum products, pipeline gas and LNG.
Exxon Mobil Corporation (NYSE:XOM) has also announced plans to discontinue operations at the Sakhalin-1 oil and gas venture in Russia and will make no new investments in Russia. The company values its Russian oil and gas operations at more than US$4 billion. The company stated: "ExxonMobil supports the people of Ukraine as they seek to defend their freedom and determine their own future as a nation. We deplore Russia's military action that violates the territorial integrity of Ukraine and endangers its people."
For a list of industrial plants in Ukraine impacted by the conflict click here.
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: LinkedIn.
