Moscow Region arbitration court grants Gazprom Neft's application to transfer SPD to Russian jurisdiction, suspends number of Shell's rights in JV

MOSCOW. Aug 22 (Interfax) - The Arbitration Court of the Moscow Region has granted the application of GPN-Salym Projects LLC, a Gazprom Neft subsidiary, to transfer Netherlands-registered PJSC Salym Petroleum Development N.V. (SPD), a joint venture with Shell (SPB: RDS.A), to Russian jurisdiction, an Interfax correspondent has reported from the courtroom.

The Court has ruled that SPD must be reorganized into Salym Development LLC in order to continue the company's activities. SPD's current shareholders, GPN-Salym Projects LLC and Shell Salym Development B.V., are to co-own Salym Development LLC in equal shares. The new company, with charter capital totaling 8.565 million rubles, is to be registered in the village of Salym, Khanty-Mansiysk Autonomous District (KhMAD). Denis Paramoshin, SPD's current general director, has been approved as the sole executive authority.

The Court has also suspended a number of Shell Salym Development B.V.'s rights in Salym Development LLC until December 31, 2023, specifically voting rights at meetings of the company's members, the right to demand a share buyout in Salym Development LLC, and the right to dispose of Salym Development LLC's charter capital.

The decision is subject to immediate compliance.