Russia's second-largest oil producer Lukoil will buy Shell's Russian retail and lubricants businesses, the companies said on May 12, as the British oil major moves ahead with its exit from the country following its Ukraine invasion.
The deal includes 411 retail stations, mainly located in the central and northwestern regions of Russia, and the Torzhok lubricants blending plant, Shell said in a statement.
"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, a vice-president with Lukoil.
Neither Shell, nor Lukoil would not comment on the value of the deal, which still requires the approval of Russia's anti-monopoly authorities.
"Under this deal, more than 350 people currently employed by Shell Neft will transfer to the new owner of this business," Shell said.
Shell has written down $3.9 billion post-tax after it pulled out of its Russian operations, including the large Sakhalin 2 LNG plant in which it holds a 27.5% stake and which is operated by Gazprom
Recommended Reading
Energy A&D Transactions from the Week of May 18, 2022
2022-05-18 - Here’s a snapshot of recent energy deals including Grey Rock’s $1.3 billion business combination with Paul Ryan-backed SPAC plus a $575 million roll-up of Rattler Midstream by Diamondback Energy.
Marketed: GRP Energy Capital Multibasin Mineral, Royalty Opportunity
2022-03-22 - GRP Energy Capital LLC retained Stephens Inc. for the sale of certain mineral and royalty interests located across multiple major U.S. oil and gas basins including the Permian, D-J and Williston Basin.
Marketed: Rocky Creek Resources, Eagle Ford, DeWitt County, Texas
2022-03-22 - Rocky Creek Resources LLC retained EnergyNet for the sale of about 2,750 net acres spanning the condensate gas window of the Eagle Ford Shale located in DeWitt County, Texas.
Marketed: Costa Energy Salt Flat Field Legacy Oil Opportunity
2022-03-22 - Costa Energy LLC retained Detring Energy Advisors for the sale of oil and gas leasehold, producing properties and related assets in the Salt Flat Field in Caldwell County, Texas.
Energy A&D Transactions from the Week of March 23, 2022
2022-03-23 - Here’s a snapshot of recent energy deals including Williams’ $950 million acquisition in the Haynesville Shale and a San Juan Basin transaction between Whiptail and DJR Energy.