Shell to exit JV with Rosneft in CPC – Bloomberg

Bloomberg reported this in an article, according to Ukrinform.

According to people familiar with the matter, if the process is successful, Shell will still retain its stake in the Caspian Pipeline Consortium (CPC), but it will no longer be held jointly with the Russian energy giant, which is under sanctions.

In March 2022, Shell pledged to gradually withdraw from the Russian oil and gas market due to Russia's war against Ukraine.

According to the sources, Shell has no plans to quit the wider CPC venture. Shell's total stake in CPC is 7.4%, according to the company's website. That includes 3.75% through the venture with Rosneft, 1.75% through direct participation and 2% through its affiliate BG Overseas Holding Ltd.

CPC carries Kazakh barrels to the Black Sea coast through Russia, and its shareholders include several global oil majors, as well as Russia's largest producers Rosneft and Lukoil PJSC, both sanctioned by the US. The Rosneft-Shell JV owns 7.4% in the consortium.

In the recent months, the CPC infrastructure has been a target of multiple drone attacks.

The strikes have led to temporary halts and curtailments in oil loadings, and the latest attack shut in one out of three CPC moorings, key for the facility's operations.

Ukraine didn't explicitly take responsibility for the attacks, although Kazakhstan's Foreign Ministry said it was in touch with Ukrainian officials via diplomatic channels over the incidents..

As reported earlier, after another strike by Ukraine's Defense Forces on Novorossiysk (Russia) on the night of November 29, Kazakhstan began urgently seeking ways to reroute its oil exports.

Meanwhile, Kazakhstan's Foreign Ministry called on Ukraine to take measures to "prevent similar incidents in the future." Ukraine's Foreign Ministry stated that, considering Kazakhstan's concerns regarding CPC infrastructure, none of Ukraine's actions are directed against third parties.

Photo: Julian Hochgesang on Unsplash