UK multinational oil and gas company Shell has signed transaction documents with Gazprom Neft, the subsidiary of Russian energy giant Gazprom, on the sale of a 50% interest in Salym Petroleum Development and is now awaiting approval from Russia, a report released by the company showed on Thursday
MOSCOW (Pakistan Point News / Sputnik - 02nd February, 2023) UK multinational oil and gas company Shell has signed transaction documents with Gazprom Neft, the subsidiary of Russian energy giant Gazprom, on the sale of a 50% interest in Salym Petroleum Development and is now awaiting approval from Russia, a report released by the company showed on Thursday.
"On December 22, 2022, Shell signed transaction documents with GPN (Gazprom Neft) to sell its 50% interest in Salym Petroleum Development Limited Liability Company. Completion is subject to a number of approvals in the Russian Federation," the report read.
Salym Petroleum Development is a joint venture of Shell and Gazprom Neft established in 1996, aimed at developing the Salym fields in the Khanty-Mansiysk Autonomous Area in Russia's western Siberia.
In February 2022, Shell announced its intent to exit from its joint ventures with Russian energy giant Gazprom, its oil-producing subsidiary Gazprom Neft and other related entities due to Moscow's military operation in Ukraine. Following Shell's decision, the Moscow Arbitration Court transferred Salym Petroleum Development from the Dutch jurisdiction to the Russian one in August 2022 at the request of Gazprom Neft.
At the same time, the court suspended a number of Shell's corporate rights in the new joint venture, in particular, the right to dispose of its interest share, until the end of 2023. In late 2022, the court allowed Shell to sell its 50% interest so that Gazprom Neft could buy it out.
