Page 13 - FSUOGM Week 12 2022

FSUOGM PROJECTS & COMPANIES FSUOGM

More foreign contractors scale back

activities in Russian oil sector

RUSSIA SEVERAL more foreign companies providing March 17 that it was winding down its affected
equipment and services to the Russian oil and projects in Russia as well as suspending all busi-
The latest companies gas industry have announced plans to suspend ness development for new projects in the coun-
to withdraw are Baker investments in light of Western sanctions and try. EU sanctions bar companies registered in
Hughes, Linde and political pressure to cut ties with the country. the bloc from exporting equipment, technology
Schlumberger. US oilfield services firms Baker Hughes and and services for the Russian energy industry, or
Schlumberger both said on March 21 they were investing in new projects there.
suspending new investments in Russia, although “The invasion of Ukraine has led to a human-
they have not committed to ending their existing itarian crisis and Linde is supporting an interna-
operations in the country. Baker Hughes said it tional crisis relief charity to help ensure access to
would continue complying with applicable laws urgently needed medicine, supplies and aid for
and sanctions while it fulfils its current contract families at risk,” Linde said. “Our thoughts and
obligations. prayers are with all those whose lives are threat-
“The crisis in Ukraine is of grave concern ened or disrupted by this conflict.”
and we strongly support a diplomatic solution,” Linde had been tipped to provide engineer-
CEO Lorenzo Simonelli said in a statement. “We ing, procurement and construction (EPC) ser-
condemn violence and our hearts go out to the vices at Gazprom’s 13mn tonne per year (tpy)
people and families of those impacted.” Baltic LNG plant in Russia’s northwest port of
Schlumberger CEO Olivier Le Peuch mean- Ust-Luga, in a partnership with Turkey’s Renais-
while said his company would “immediately sance Industries. It had a joint patent with Gaz-
suspend” new investments and technology prom for the liquefaction technology that will be
deployments in Russia. used at the plant. The Russian gas company has
“We continue to actively monitor this not commented on potential delays as a result of
dynamic situation and will fulfil any existing Linde’s withdrawal.
activity in full compliance with applicable inter- Earlier this month General Electric also said
national laws and sanctions,” he said. “Safety and it was suspending its operations in Russia, “with
security are at the core of who we are as a com- the exception of providing essential medical
pany, and we urge a cessation of the conflict and equipment and supporting existing power ser-
a restoration of safety and security in the region.” vices to people in the region.” General Electric’s
Both Baker Hughes and Schlumberger have main business there is providing gas turbines
extensive operations in Russia. Their expertise and other equipment to power plants.
and equipment is particularly crucial at Russia’s All told, hundreds of Western companies
many challenging greenfield projects, as well as have announced plans either to leave Russia
mature fields where it has increasingly difficult to or suspend new investments in the country in
maintain recovery. response to Moscow’s actions in Ukraine. These
Other companies have gone further in their include international oil majors BP, ExxonMobil,
commitment. Germany’s Linde reported on Shell and TotalEnergies. ™

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