oil industry

Shell faces $400-million write-down on Russian downstream assets

Reuters
Shell faces $400-million write-down on Russian downstream assets

SHELL. A Shell oil and gas sign is pictured near Nowshera, Pakistan's northwest Khyber-Pakhtunkhwa province, September 8, 2010.

Morteza Nikoubazl/Reuters

The downstream assets come on top of $3 billion mentioned in Shell's February 28 announcement that it would quit its ventures in Russia

LONDON, United Kingdom – Shell faces write-downs on $400 million in Russian downstream assets, it said on Thursday, March 10, having announced $3 billion worth of other projects previously.

The oil major announced on February 28 that it would quit its ventures in Russia with Gazprom and related entities including the flagship Sakhalin 2 liquefied natural gas (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 on Thursday.

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 reached stood at 140,000 barrels of oil equivalent per day compared with around 2.2 million boe/d total volumes for sale, according to its annual report and a spokesperson.

Shell’s write-downs come amid a mass exodus of western oil majors. BP is facing a $25-billion write-down for its planned divestment of Russian assets.

France’s TotalEnergies has said it is sticking with its Russian investments. – Rappler.com