London-based Shell PLC announced Monday its exit from joint ventures with Gazprom, another Russian state-owned energy company. Meanwhile, Norwegian energy company Equinor said Monday it is stopping new investments in Russia and will begin exiting joint ventures in the country.
Britain's BP PLC, the first to make a Russian exit call, said Sunday it was divesting its roughly $14 billion stake in Rosneft that it has held since 2013. It will also be exiting other business relationships with Rosneft within Russia.
BP denounced the Russian government's "act of aggression" against Ukraine, and CEO Bernard Looney said in a statement the "situation unfolding in Ukraine" has prompted the company to "fundamentally rethink BP's position with Rosneft."
"I am convinced that the decisions we have taken as a board are not only the right thing to do, but are also in the long-term interests of BP," Looney said. "Our immediate priority is caring for our great people in the region, and we will do our utmost to support them. We are also looking at how BP can support the wider humanitarian effort."
In addition to the divestiture of BP's 20% stake in Rosneft, Looney and former executive Bob Dudley have both resigned from Rosneft's board, according to the statement.
Shell said Monday it intends to exit joint ventures with Gazprom, which includes a roughly 27.5% percent stake in the Sakhalin-2 venture, Russia's first offshore gas project and one of the world's largest integrated export-oriented integrated oil and gas projects, according to Shell's website.
The company will also be dropping its stake in other energy ventures and "intends to end its involvement in the Nord Stream 2 pipeline project."
Shell CEO Ben van Beurden said in a statement Monday the company is "shocked by the loss of life in Ukraine, which we deplore, resulting from a senseless act of military aggression which threatens European security."
"Our decision to exit is one we take with conviction," Van Beurden said. "We cannot — and we will not — stand by. Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia. In discussion with governments around the world, we will also work through the detailed business implications, including the importance of secure energy supplies to Europe and other markets, in compliance with relevant sanctions."
Shell said in its statement that the Russian ventures constituted around $3 billion worth of long-term investments — referred to as non-current assets — in that country. It said the decision to exit those will likely "impact the book value of Shell's Russia assets and lead to impairments."
U.K. Business Secretary Kwasi Kwarteng tweeted out his support of BP's decision Sunday and similarly praised the news of Shell's divestment on Monday, saying: "There is now a strong moral imperative on British companies to isolate Russia. This invasion must be a strategic failure for Putin."
Equinor also announced Monday that its leadership has decided to "stop new investments into Russia," and the company is beginning the process of exiting joint ventures in the country.
Its CEO and president Anders Opedal said in a statement the company is "deeply troubled by the invasion of Ukraine, which represents a terrible setback for the world, and we are thinking of all those who are suffering because of the military action," and added that their thoughts are with those suffering due to the military action.
According to the company's statement, at the close of 2021, Equinor had $1.2 billion in non-current assets in Russia. Similarly to Shell, the company said it expects its decision to impact the book value of its Russian assets and result in impairments.
Other energy giants with stakes in Russian energy projects, including Chevron, ExxonMobil and TotalEnergies, have not announced plans to abandon their holdings.
France's TotalEnergies holds a 19.4% stake in Novatek — the largest independent natural gas producer in Russia — and a 20% stake in the Yamal LNG project, according to recent press releases from the company. TotalEnergies also holds a 10% stake in Arctic LNG 2, an under-development Novatek gas project.
In a statement sent to Law360 Monday, a Chevron spokesperson said the company is "monitoring developments" and "as always, we comply with all current applicable laws and regulations."
According to its website, Chevron holds a 15% stake in the Caspian Pipeline Consortium, which includes a pipeline connecting oil fields in Kazakhstan with the Russian Black Sea port of Novorossiysk.
The company representative said its production in Kazakhstan and exports through the Caspian Pipeline Consortium pipeline "continue as normal."
Exxon's Russian holdings include a subsidiary's 30% stake in the offshore oil project Sakhalin-1.
Representatives for Exxon and TotalEnergies did not immediately return a request for comment Monday.
Bethany Williams, a spokesperson for the American Petroleum Institute, told Law360 Monday that the group "strongly condemn[s] Russia's attack on Ukraine."
"As with most of the international business community, our member companies are closely monitoring the situation and assessing the best options for ensuring continued access to affordable and reliable energy around the world during this time of crisis," Williams said.
--Editing by Vaqas Asghar.
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