By Shadia Nasralla
LONDON – Shell faces writedowns on $400 million in Russian downstream assets, it said on Thursday, having announced $3 billion worth of other projects previously.
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 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 Feb. 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 (boe/d) compared with around 2.2 million boe/d total volumes for sale, according to its annual report and a spokesperson.
Shell’s writedowns come amid a mass exodus of western oil majors. BP is facing a $25 billion writedown for its planned divestment of Russian assets.
France’s TotalEnergies has said it is sticking with its Russian investments.
(Reporting by Shadia Nasralla; editing by David Goodman and Jason Neely)