Ukraine invasion: Shell pulls out of energy investments in Russia
Shell says it pulling out of Russia as President Vladimir Putin’s invasion of Ukraine costs the country’s all-important energy industry foreign investment and expertise. Shell announced its intention Monday to exit its joint ventures with Gazprom and related entities, including its 27.5 per cent stake in the Sakhalin-II liquefied natural gas facility, its 50 per cent stake in the Salym Petroleum Development and the Gydan energy venture. Shell also intends to end its involvement in the Nord Stream 2 pipeline project. “We are shocked by the loss of life in Ukraine, which we deplore, resulting from a senseless act of military aggression which threatens European security,” said Shell’s chief executive officer, Ben van Beurden. The move comes as day after rival BP announced plans to shed its almost 20 per cent stake in Rosneft, which is controlled by the Russian state. Also Monday, Norway’s Equinor said it would halt new investment in Russia and begin selling its holdings in the country. Shell’s most important investment in Russia is its stake in the Sakhalin-II project in the waters near Sakhalin Island off Russia’s east coast. Japan-based Mitsui owns 12.5 per cent of the project and Mitsubishi holds 10 per cent.
India contemplating to release its petroleum reserve amid Russia-Ukraine conflict
In the wake of ongoing Russian-Ukraine conflict, India is seriously contemplating releasing its Strategic petroleum reserves to minimize the impact of the recent steep rise in crude oil in the International Market that has reached its all time high since 2014. Crude oil prices which were hovering between USD 60 to 80 a barrel for the past one year has crossed USD 103 a barrel after Russia invaded Ukraine last week. According to sources, the decision to release strategic reserves would be taken in the coming weeks if the Russian-Ukraine tension does not escalate any further. India had formed Indian Strategic Petroleum Reserve Ltd (ISPRL) Company in 2005 with an objective to maintain an emergency fuel reserve of 5.33 Million Metric tons (MMT) to ensure emergency fuel reserve for 10 days. Last year, it also initiated the process to build another strategic reserve of 4 MMT with an investment of Rs 100 billion at Chandikhole in Odisha. The Idea behind preparing a strategic oil reserve is to stock crude oil when it is at its low in the International Market, and use it domestically when the prices are high in the international market or in case the country faces any emergency situation. “Government is closely monitoring the global energy market, its petroleum price volatility, possibilities of supply disruptions due to the evolving geopolitical situation and would take appropriate decisions as and when required to minimize the volatility in the domestic market,” said a senior officer of the Union Petroleum Ministry here on Monday. However, no final decision has been taken yet. Meanwhile, the Ministry has also told the ethanol producing companies to speed up India’s alcohol-blending target. India has set a target to meet 20% ethanol blending by 2025 that could save more than Rs 300 billion foreign reserve. Presently India has increased its domestic ethanol production from 2 billion litre in 2014 to 7 billion litre reveals a recently released report of the Niti Ayog.
BP quits Russia in up to $25 billion hit after Ukraine invasion
BP is abandoning its stake in Russian oil giant Rosneft in an abrupt and costly end to three decades of operating in the energy-rich country, marking the most significant move yet by a Western company in response to Moscow’s invasion of Ukraine.