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Who will buy shares of oil majors exiting Russia? - Rystad Energy’s view

Oil&Gas Materials 3 March 2022 10:55 (UTC +04:00)
Who will buy shares of oil majors exiting Russia? - Rystad Energy’s view

BAKU, Azerbaijan, March 3

By Leman Zeynalova – Trend:

Due to the exit of oil and gas majors, Russian operators will lose capital, know-how, and technology for complex acreage, Daria Melnik, upstream analyst with Rystad Energy told Trend.

“Many projects may experience production outages in the short term. In the medium term, the launch of many fields and projects will be postponed, some of them may even cancelled in the worst case. Investments will be cut accordingly,” said the analyst.

Melnik noted that many stakes of foreign majors will be offered with a huge discount which may attract buyers in Asian countries.

“In a more pessimistic scenario, Russian companies will be forced to buy out the stakes of their partners which means billions of dollars and thus much lower investments into project development. Russian authorities decided to relieve 1 trillion rubles from the National Wealth Fund to support Russian companies facing divestments of their partners. Not clear whether this money will be loaned to Russian companies or the state will nationalize these stakes. The first option is more realistic,” she concluded.

World oil majors such as bp, Equinor, Eni, Shell have decided to exit from their projects in Russia amid the crisis in Ukraine.

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Follow the author on Twitter: @Lyaman_Zeyn

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