Shell severs partnership with Rosneft in Caspian Pipeline Consortium
Shell (Photo: Shell)
Shell PLC intends to exit its partnership with Russia's PJSC Rosneft, with which it jointly owns a stake in a pipeline transporting oil from Kazakhstan, Bloomberg reported on Dec. 10.
If the process succeeds, Shell will remain a shareholder in the Caspian Pipeline Consortium (CPC) but will no longer share its stake with the sanctioned Russian company.
This week, Russian dictator Vladimir Putin allowed two companies to take legal actions that could alter or terminate their property rights in the joint Caspian venture.
Russian authorities did not explain the basis for this permission, fueling speculation about possible changes in the Caspian Pipeline Consortium's ownership structure — a key route for Kazakh oil exports.
The CPC transports Kazakh oil to the Black Sea coast through Russian territory. Its shareholders include major international oil companies as well as sanctioned Russian firms Rosneft and PJSC Lukoil. The Rosneft-Shell joint venture controls 7.4% of the consortium's shares.
According to information on the company's official website, Shell's total stake in the consortium is 7.4%. Of that, 3.75% belongs to the joint venture with Rosneft, 1.75% to direct Shell participation, and another 2% to its subsidiary BG Overseas Holding Ltd.
Reports said Russia's Prosecutor General's Office is demanding €1.5 billion ($1.8 billion) in compensation from oil and gas giant Shell for unpaid 2022 gas supplies to Gazprom Export.
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