Oil deal

Shell to sell Russian petrol stations to Lukoil

Shell is unlikely to make a profit on the Lukoil deal

Shell is to sell its petrol stations in Russia to the country’s second-biggest oil producer for an undisclosed sum as part of its process of sanctions-enforced withdrawal.

It will sell Shell Neft, which owns its retail and lubricants businesses, to Lukoil, though it is thought unlikely that it will profit meaningfully from the deal.

The deal is due to complete later this year, according to The Times, and Huibert Vigeveno, Shell’s downstream director, said more than 350 people currently employed by Shell Neft will transfer to the new owner.

Shell is Europe’s biggest oil company and after Russia’s invasion of Ukraine it announced it would sever its venture with state gas giant, Gazprom.

That includes its interest in the Nord Stream 2 pipeline to Germany and its stake in the Sakhalin-2 LNG project in Russia’s far east.

It is understood to be in talks to sell its stake in Sakhalin-2 to Chinese state energy companies.

In early March, the company said it would exit Russian oil and gas completely and last week it booked a $3.9 billion post-tax impairment charge as it wrote off most of the value of its assets in Russia.

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