Page 16 - FSUOGM Week 10 2022

FSUOGM PROJECTS & COMPANIES FSUOGM

Shell pledges Russian oil profits

for Ukrainian aid

NETHERLANDS SHELL announced on March 5 it was placing all for you,” the minister said in a tweet.
profits that it earns from Russian oil it purchases Shell has since defended the purchase, adding
Russian exporters into a fund that will go towards humanitarian aid it would seek alternatives to Russian oil wherever
have faced significant in Ukraine, after drawing criticism for purchas- possible, but that shifting its operations would
problems in recent days ing a discounted cargo of Russian Urals blend. not happen overnight, as Russian oil is such a
arranging credit lines, Shell is one of several international oil com- significant part of global supply.
shipping and insurance. panies (IOCs) that have announced their intent “We didn’t take this decision lightly and we
to leave Russia in response to Moscow’s actions understand the strength of feeling around it,”
in Ukraine. The company is a shareholder in the Shell said.
10mn tonne per year (tpy) Sakhalin-2 LNG plant Earnings from such sales would be towards
in the Russian Far East, owned by Gazprom, and a dedicated fund, and Shell said it would work
is partnered with Gazprom Neft at the Salym with aid agencies to determine how those funds
Petroleum oil development in Western Siberia. should be best used to alleviate the hardship of
First it will have to find a buyer for the assets, the Ukrainian people.
however. Meanwhile, Russian exporters have faced
Days after Shell’s announcement, it was significant problems in recent days arranging
revealed that the super-major had bought a credit lines, shipping and insurance, leading
cargo of Russia’s flagship Urals crude at a record to delays and cancellations of oil cargoes,
discount. While no governments have banned largely as a result of sanctions. Now, govern-
the purchase of Russian oil, the trade sparked ments in Europe and the US are discussing an
strong criticism, including from Ukrainian For- embargo on Russian oil and gas supplies. But
eign Minister Dmytro Kuleba. with both oil and gas prices already at record
“I am told Shell discreetly bought some highs, it means to be seen whether such steps
Russian oil yesterday. One question to @Shell: could be taken without significantly impair-
doesn’t Russian oil smell [of] Ukrainian blood ing Western economies. ™

Cadogan temporarily ceases

production in Ukraine

UKRAINE SHARES in London-listed Cadogan Petroleum The company likewise said the safety of its
slumped 12% in early trading on March 7 after personnel and contractors was paramount.
Cadogan is shutting the company announced it was suspending its In related news, another London-listed firm
down production in the production operations in Ukraine. called Plexus said it was cancelling a licens-
wake of the invasion. Cadogan said it had taken the decision to pro- ing agreement with Russian partner Gusar for
tect its employees and was taking all measures its POG-GRIP rental exploration wellhead
to secure its assets in the country, which com- equipment.
prise two conventional gas-condensate and oil “As a result of the ongoing situation in
licences – Monastyretska and Bitlyanska – in the Ukraine, Plexus has decided to suspend activ-
west, near the Polish border. ities with Gusar until further notice,” the com-
“The company is continuing to monitor the pany said.
situation very closely,” Cadogan said. “Further As a result of the decision, Plexus expects to
updates will be delivered as appropriate.” bear a GBP650,000 ($852,000) negative impact
Other junior producers in Ukraine have on its cash flow in the current financial year,
similarly been affected by the escalating “related to a combination of pending royalties
conflict there. London-listed Enwell Energy and planned advance stage payments for well-
said on February 24 that it had ended its pro- head equipment, which as a result of the situa-
duction and drilling operations at the Mek- tion are now currently uncertain.”
hediviska-Golotvshinska, Svyrydivske and “As the company had been performing well,
Vasyschevskoye gas and condensate fields, as it is currently anticipated that despite this situa-
well as at the Svystunivsko-Chervonolutskyi tion, the year-end cash position will be broadly
exploration licence. in line with expectations,” it said. ™

P16 www. NEWSBASE .com Week 10 10•March•2022