6 Mar 2023 11:38

Gazprom Neft closes purchase of Shell's stake in Salym project

MOSCOW. March 6 (Interfax) - Gazprom Neft has closed the deal to buy Shell's stake in the Salym project, data from the Unified State Register of Legal Entities (USRLE) showed.

A 50% stake in Salym Petroleum Development LLC (SPD) was transferred Friday from Shell (SPB: RDS.A) Salym Development B.V. to GPN-Middle East Projects LLC. The other 50% of SPD is owned by GPN-Salym Projects LLC.

The Russian oil company confirmed late Friday evening that it had consolidated 100% of shares in SPD. "Shell's exit will not affect plans to further develop the asset. Gazprom Neft has all the necessary technologies, resources and expertise to independently develop the venture," the company said.

Shell said that Gazprom Neft has also acquired "other associated assets." It was reported earlier that the Russian president had granted permission for Gazprom Neft to also acquire 50% of common shares in CJSC Khanty Mansi Oil and Gas Union from Shell. This joint venture planned to study a number of fields in Western Siberia.

Shell previously announced plans to gradually exit all Russian hydrocarbon projects, including oil, oil products, gas and liquefied natural gas. In the middle of 2022, Shell stepped away from the management of SPD, removed its representatives from the venture's board of directors, downgraded this asset's value to zero and recognized full impairment in the amount of $233 million.

At the end of 2022, as a result of Russian legal changes and court decisions, Netherlands-based SPD was reorganized into Russian company Salym Petroleum Development LLC, in which Shell retained a 50% stake.

A court earlier granted Gazprom Neft's motion to lift injunctions on Shell that prohibited the Anglo-Dutch major from selling its stake in SPD.

Salym is a major production and exploration project in the Khanty Mansi Autonomous District. SPD is developing the Salym group of fields, which includes Zapadno-Salymskoye, Verkhnesalymskoye, Vadelypskoye, Yuzhno-Yamskoye, Vostochno-Shapkinskoye and Salymsky-2, with C1+C2 recoverable oil reserves of 140 million tonnes confirmed by Russia's commission for reserves.