Shell to Dissolve CPC Pipeline JV With Rosneft But Keep Stake
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Article content(Bloomberg) — Shell Plc is planning to dissolve a partnership with Russia’s Rosneft PJSC through which the two oil giants jointly own a stake in a pipeline from Kazakhstan.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentIf the process is successful, Shell will still keep the stake in the Caspian Pipeline Consortium — rather than own it jointly with the sanctioned Russian energy giant, people with knowledge of the matter said, asking not to be identified because the matter is not public.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentRussia’s President Vladimir Putin this week authorized the two producers to make transactions that may lead to “establishment, modification, termination, or encumbrance” of property rights in their Caspian venture. Article contentArticle contentShell pledged back in March 2022 to withdraw from Russian oil and gas in a phased manner due to the war in Ukraine. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe Kremlin provided no explanation for the permission, raising speculation over potential changes in the shareholdering structure of the CPC project, the main export route for Kazakhstan’s oil. Article contentShell has no plans to quit the wider CPC venture, the people said. Shell’s total stake in CPC is 7.4%, according to the company’s website. That includes 3.75% through the venture with Rosneft, 1.75% through direct participation and 2% through its affiliate BG Overseas Holding Ltd.Article contentA spokesman for Shell declined to comment.Article contentCPC carries Kazakh barrels to the Black Sea coast through Russia, and its shareholders include several global oil majors, as well as Russia’s largest producers Rosneft and Lukoil PJSC, both sanctioned by the US. The Rosneft-Shell JV owns 7.4% in the consortium.Article contentIn the recent months, the CPC infrastructure has been a target of multiple drone attacks. Article contentThe strikes have led to temporary halts and curtailments in oil loadings, and the latest attack shut in one out of three CPC moorings, key for the facility’s operations. Article contentUkraine didn’t explicitly take responsibility for the attacks, although Kazakhstan’s Foreign Ministry said it was in touch with Ukrainian officials via diplomatic channels over the incidents.Article contentArticle contentTrending Posthaste: A market phenomenon not seen in 50 years is raising red flags at the world's central bank News David Rosenberg: 10 reasons why we're now bullish on the Canadian dollar for the first time in many years News Mark Wiseman top contender for ambassador to U.S. as Kirsten Hillman prepares to step down Finance Posthaste: China is gaining ground in a crucial power struggle most people don't know exists News Budget watchdog regrets calling Canada's fiscal position 'stupefying' Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Posthaste: A market phenomenon not seen in 50 years is raising red flags at the world's central bank News David Rosenberg: 10 reasons why we're now bullish on the Canadian dollar for the first time in many years News Mark Wiseman top contender for ambassador to U.S. as Kirsten Hillman prepares to step down Finance Posthaste: China is gaining ground in a crucial power struggle most people don't know exists News Budget watchdog regrets calling Canada's fiscal position 'stupefying' Economy