Shell ends partnership with Rosneft in Kazakhstan oil supplies – Bloomberg
Illustrative photo: British oil and gas company Shell (Getty Images)
The major British oil and gas company Shell plans to end its partnership with the sanctioned Russian company Rosneft. Due to this partnership, the companies jointly own a stake in an oil pipeline in Kazakhstan, Bloomberg informs.
Shell will retain its stake in the Caspian Pipeline Consortium (CPC); it will simply no longer hold it jointly with the sanctioned Russian company. Shell’s plans were confirmed to the outlet by several sources on the condition of anonymity.
Since March 2022, Shell has stated that it will gradually withdraw from Russian gas and oil due to Russia’s invasion of Ukraine. At the same time, the company does not plan to exit the much larger CPC joint venture.
The CPC transports oil from Kazakhstan to the Black Sea coast, to the city of Novorossiysk. Among the CPC shareholders are the sanctioned Russian companies Rosneft and Lukoil, as well as several other global oil giants.
Shell’s stake in the CPC amounts to 7.4%: 3.75% through a joint venture with Rosneft, 1.75% through direct participation, and 2% through its affiliate BG Overseas Holding Ltd. The company declined to provide an official comment.
After Ukraine’s strikes on Novorossiysk, Kazakhstan will, for the first time, begin supplying oil directly to China, bypassing Russian pipelines. Previously, Kazakhstan had used Russian infrastructure for its oil exports.
On November 30, Kazakhstan urged Ukraine to stop attacks on the Black Sea oil terminal in Novorossiysk. Prior to that, on November 29, it became known that maritime drones attacked and completely disabled the berthing facility of the CPC sea terminal in Novorossiysk.
The Ukrainian Ministry of Foreign Affairs took note of Kazakhstan’s expressed concern and also reminded the country that it has never condemned Russian strikes on Ukrainian civilians and infrastructure.
