Shell Completes Sale of Russian Assets to Lukoil
Following all necessary regulatory approvals, Shell’s sale of Shell Neft, its retail stations and lubricants business in Russia, to Lukoil has been completed. The sale was initially agreed earlier this month and has been completed through Shell’s units, Shell Overseas Investment and B.V. Dordtsche Petroleum Maatschappij.
On March 8, 2022, Shell announced its intent to withdraw from its involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas and liquefied natural gas (LNG) in a phased manner.
Shell Neft’s retail network consists of 240 sites owned by Shell Neft, and 171 sites owned by dealers. The deal with Lukoil includes 411 retail stations, mainly located in the Central and Northwestern regions of Russia, and the Torzhok lubricants blending plant, around 124 miles north-west of Moscow.
“Our priority is the well-being of our employees,” said Huibert Vigeveno, Shell’s Downstream Director earlier this month. “Under this deal, more than 350 people currently employed by Shell Neft will transfer to the new owner of this business.”
“The acquisition of Shell’s high-quality businesses in Russia fits well into Lukoil’s strategy to develop its priority sales channels, including retail, as well as the lubricants business,” said Maxim Donde, Lukoil’s Vice President for Refined Products Sales.
Lukoil is one of the largest publicly traded, vertically integrated oil and gas companies in the world in terms of proved hydrocarbon reserves and production; and the second largest producer of crude oil in Russia.
Established in 1991, LUKOIL currently operates globally with core upstream assets located in Russia. The full production cycle includes oil and gas exploration, production and refining; production of petrochemicals and lubricants; power generation; marketing and distribution.
Published: 26-05-2022
