More Energy Majors Comment on Russia Stance

After BP and Equinor revealed that they are exiting Russian interests, Shell, TotalEnergies and Chevron have shed more light on their stances relating to Russia.

The board of Shell plc announced its intention to exit its joint ventures with Gazprom and related entities, including its 27.5 percent stake in the Sakhalin-II liquefied natural gas facility, its 50 percent stake in the Salym Petroleum Development and the Gydan energy venture. Shell also noted that it intends to end its involvement in the Nord Stream 2 pipeline project, which was recently suspended.

Shell revealed that, at the end of 2021, the company had around $3 billion in non-current assets in these ventures in Russia. The business said it expects that the decision to start the process of exiting joint ventures with Gazprom and related entities will impact the book value of its Russia assets and lead to impairments. Shell highlighted that its ‘Powering Progress’ strategy and financial framework remain unchanged.

“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,” Shell’s chief executive officer, Ben van Beurden, said in a company statement.

“Our decision to exit is one we take with conviction … We cannot – and we will not – stand by. Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia,” he added in the statement.

“In discussion with governments around the world, we will also work through the detailed business implications, including the importance of secure energy supplies to Europe and other markets, in compliance with relevant sanctions,” van Beurden went on to say.

Shell highlighted that its staff in Ukraine and other countries has been working together to manage the company’s response to the crisis locally. The business said it will work with aid partners and humanitarian agencies to help in the relief effort.

TotalEnergies condemned Russia’s military aggression against Ukraine and said it will no longer provide capital for new projects in Russia.

The company also noted that it supports the scope and strength of the sanctions put in place by Europe and said it will implement them regardless of the consequences on its activities in Russia. These consequences are currently being assessed by the company, TotalEnergies revealed.

“TotalEnergies condemns Russia's military aggression against Ukraine, which has tragic consequences for the population and threatens Europe,” TotalEnergies said in a company statement.

“TotalEnergies expresses its solidarity with the Ukrainian people who are suffering the consequences and with the Russian people who will also suffer the consequences,” the company added.

“TotalEnergies is mobilized to provide fuel to the Ukrainian authorities and aid to Ukrainian refugees in Europe,” the company continued.

When asked if it would be exiting Russian interests or maintaining them, a Chevron spokesperson told Rigzone, “we are monitoring developments - as always, we comply with all current applicable laws and regulations”.

Rigzone posed the same question to media relations contacts at ExxonMobil and Eni but was yet to receive a reply from those companies at the time of writing.

Chevron’s work in Russia ranges from exploration and transportation to technology licensing and consumer products, according to the company’s website, which highlights that Chevron is a major investor and 15 percent shareholder in the Caspian Pipeline Consortium.

ExxonMobil has had over 25 years of continuous business presence in Russia across upstream, downstream and chemical divisions, according to its website, which highlights that the company has more than 1,000 employees in Russia.

Eni’s site notes that the company has been operating in Russia since the 1960s, when it started importing the first crude oil into Italy. The company is now active in the exploration and production, global gas and LNG, refining and marketing, and chemical sectors in the country, its site shows.

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