Shell exits Russian Arctic oil venture deal formed with Gazprom Neft
Category: #energy-and-environment  By Saipriya Iyer  Date: 2020-04-15
  • share
  • Twitter
  • Facebook
  • LinkedIn
Shell exits Russian Arctic oil venture deal formed with Gazprom Neft

Royal Dutch Shell, commonly known as Shell, has recently decided to withdraw from the deal on Meretoyakha Neftegaz, a Russian Arctic oil joint venture, due to some external factors. The deal was previously expected to be formed with Gazprom Neft. Gazprom Neft has valued the total resources at the fields of Meretoyakha Neftegaz at 1.1 billion tons of oil (nearly 8 billion barrels of oil).

Headquartered at St. Petersburg, Gazprom Neft is the 3rd largest producer of oil and the subsidiary of Gazprom in Russia.

The decision of the oil and gas company, Shell, to back out from the deal of establishing a joint venture was carried out in the wake of coronavirus pandemic that has been disrupting the global economy worldwide. Due to the outbreak, a weak demand for oil and gas has been observed, which leads to the drop of global investments into various energy projects.

Therefore, the company has reportedly declared in a statement regarding its inability to pursue the completion of the joint venture deal based on the Meretoyakha Neftegaz, due to the challenging external environments and economic downturn caused by the COVID-19 outbreak. The deal was initially set up for a 50/50 joint venture to extract oil in the region of Yamal-Nenets. It was signed in 2019 at a business forum in Russia and was expected to be completed by the beginning of 2020.

The key production region of oil and gas in Russia is Yamal, which accounts for up to 1/5th of the global natural gas reserves. Despite Shell’s withdrawal from the oil join venture deal, Gazprom Neft is planning to independently pursue the project development in accordance with the previously approved work plan.

Shell and Gazprom Neft are still involved in an oil project named Salym Petroleum Development in Russia.

Source credits:

https://www.reuters.com/article/shell-russia-oil/shell-ditches-russian-arctic-oil-joint-project-idUSL5N2C13DV

  • share
  • Twitter
  • Facebook
  • LinkedIn

About Author

Saipriya Iyer

Saipriya Iyer    

Saipriya Iyer currently works as a content developer for GroundAlerts. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had previous experience of 3 years under her belt, she has dabbled with website ...

Read More >>

More News By Saipriya Iyer

Global Wooden Furniture Market by Key Players, Countries, Segments and Application, Forecast to 2027
Global Wooden Furniture Market by Key Players, Countries, Segments and Application, Forecast to 2027
By Saipriya Iyer

Global wooden furniture market is poised to witness a tremendous growth over the projected timeframe of 2020 to 2026 on account of rising number of residential and commercial construction activities across the globe. Alongside, increasing consumer in...

Cladribine Market Growth Manufacturers, Regions, Product Types, Major Application Analysis & Forecast To 2026
Cladribine Market Growth Manufacturers, Regions, Product Types, Major Application Analysis & Forecast To 2026
By Saipriya Iyer

Global Cladribine Market Research Report: Size, Share, Trends, Industry Growth, Opportunity, Application, Production, Segmentation, Cost Structure, Company Profile, Product Picture and Specifications during the Forecast period by 2026 Executive summ...

Cardiovascular Disease Drugs Market size and Key Trends in terms of volume and value 2021-2026
Cardiovascular Disease Drugs Market size and Key Trends in terms of volume and value 2021-2026
By Saipriya Iyer

Global Cardiovascular Disease Drugs ?Market report 2026 focuses on the major Types and Applications for the key players. Global Cardiovascular Disease Drugs market research report also provides analysis of the market share, segmentation, revenue fore...