MOSCOW (MRC) -- Shell faces writedowns on USD400 MM in Russian downstream assets, it said, having announced USD3 B worth of other projects previously, according to Hydrocarbonprocessing.
The oil major announced on Feb. 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 on Thursday.
The downstream assets come on top of USD3 B mentioned in its Feb. 28 announcement, a company spokesperson said.
Shell's production from Russian oil and gas projects reached stood at 140,000 bpd of oil equivalent compared with around 2.2 MMbpd of oil equivalent total volumes for sale, according to its annual report and a spokesperson.
As MRC informed earlier, on February 27, Shell’s U.K. rival BP announced plans to shed its almost 20% stake in Rosneft, which is controlled by the Russian state. Norway’s Equinor said Monday that it would halt new investment in Russia and begin selling its holdings in the country.
We remind that Shell Chemicals expects its new petrochemical complex in southwest Pennsylvania to come online by the end of 2022, Royal Dutch Shell CFO Jessica Uhl said February 3, during the company's Q4 2021 earnings call.
Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.