Equinor Exits All Russia Joint Ventures

Equinor Exits All Russia Joint Ventures
Equinor is released from all future commitments and obligations.

Equinor has announced that it has transferred its participating interests in four Russian joint ventures to Rosneft and that it is released from all future commitments and obligations.

An agreement to exit the Kharyaga project has also been signed, the company noted, adding that its exit from all joint ventures has been completed in accordance with Norwegian and EU sanctions legislation related to Russia.

At the end of February, Equinor revealed that its board of directors had decided to stop new investments into Russia and start the process of exiting the company’s Russian joint ventures. In a company statement at the time, Equinor highlighted that it expected that the decision to start the process of exiting joint ventures in the country would impact the book value of Equinor’s Russian assets and lead to impairments.

“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,” Anders Opedal, President and CEO of Equinor, said in a company statement at the end of February.

“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,” he added in a company statement at the time.

On March 14, Equinor announced that a decision had been made that the company would stop trading in Russian oil. The company noted at the time that this was part of its efforts to exit Russia and included getting a full overview of all relevant aspects, including legal obligations.

In its first quarter 2022 results statement released on May 4, Equinor revealed that it had recognized net impairments of $1.08 billion related to assets in Russia in the quarter.

Equinor notes on its website that Russia is a major oil and gas producer and has a vast resource potential. The company has been present in Russia for more than 30 years and has developed close relationships with Russian energy companies and communities, Equinor’s site highlights.

Oil soared past $100 per barrel for the first time in years in February as Russian forces escalated a conflict with Ukraine.

To contact the author, email andreas.exarheas@rigzone.com



WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.