Report: Shell in Talks with Chinese Oil Firms to Sell Its Sakhalin-2 Stake

Reuters
Friday, April 22, 2022

Energy giant Shell is in talks with some Chinese companies to sell its stake in a major Russian gas project amid sanctions imposed on Moscow over its invasion of Ukraine, The Telegraph reported on Thursday.

The London-listed company is in joint talks with Chinese state-run oil companies CNOOC Ltd, China National Petroleum Corp (CNPC) and Sinopec over its 27.5% holding in the Sakhalin-2 liquefied natural gas venture, the British newspaper said.

Sakhalin-2 is controlled and operated by Russian gas giant Gazprom. Other stakeholders in the project include Japan's Mitsui & Co and Mitsubishi Corp.

The discussions with the Chinese firms include the potential sale of Shell's stake to one, two or all three of the companies, the newspaper said, adding that Shell is to be open to potential buyers outside China.

A Sinopec spokesperson said he is not aware of the discussion and declined to comment further.



Shell declined to comment on the report, while CNOOC and CNPC did not immediately respond to Reuters' requests for comment.

A person familiar with CNPC's gas business said Chinese state-backed energy firms are following Beijing's order to be cautious and prudent when dealing with Russian issues.

"The communication between Chinese companies and Russia at this point only focuses on trade and development of new projects," the person said, adding that the takeover of abandoned projects from western firms is not on the agenda.

Another person from CNPC also said that Chinese companies are unlikely to jump on Shell's stake.

Shell in February said it would exit all its Russian operations, including the Sakhalin-2 LNG plant, after sanctions tightened on Moscow.  story

The company earlier this month said it would write down up to $5 billion following its decision to exit Russia.

(Reuters - Reporting by Radhika Anilkumar in Bengaluru, Muyu Xu in Beijing and Chen Aizhu in Singapore; Editing by Amy Caren Daniel and Christian Schmollinger)



Categories: Energy LNG Industry News Activity Europe Asia Regulations

Related Stories

Woodside Inks Long-Term LNG Supply Deal with China Resources

Tokyo Gas Enters LNG Market in Philippines

Eco Wave Finds Partner for Wave Energy Project in India

Six New Gas Wells in Line for BP’s Shah Deniz Field in Caspian Sea

EnQuest to Acquire Harbour Energy's Vietnamese Assets

Europe's Gas Uncertainty Help Drive Asian LNG Spot Prices Higher

Saipem’s Castorone Vessel on Its Way to Türkiye’s Largest Gas Field

CNOOC Brings Bohai Sea Oil Field On Stream

Valeura Boosts Production at Jasmine Field with Five New Wells Now Onstream

TotalEnergies and Oil India to Jointly Tackle Methane Emissions Issues

Current News

Jadestone Submits Field Development Plan for Assets Off Vietnam

Woodside Inks Long-Term LNG Supply Deal with China Resources

CNOOC Starts Production at Two New Oil and Gas Projects

Argentina YPF to Shed Offshore Exploration Projects

Cairn India Might Invest in US Oil Servicing Firms to Increase Production

All Gas from Conrad’s Mako Field to be Sold to Indonesia’s PLN

ORE Catapult and Japan’s FLOWRA to Jointly Advance Floating Wind

Shell Hires Noble’s Drillship for Work in Southeast Asia

Second Hai Long Substation Heads to Project Site Offshore Taiwan

Shell Launches Next Phase of Malaysia's Deepwater Project with First Oil Production

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com