Equinor (OSLO:EQNR) has fully exited its holdings in Russia’s Kharyaga oil field, concluding a total withdrawal from the country in the wake of its invasion of Ukraine.
In May the Norwegian energy giant confirmed it had transferred interests in four Russian joint ventures to Rosneft and was “released from all future commitments and obligations.”
At the same time it announced the signing of an agreement to leave the Kharyaga project – a process which has now been completed, the company said Friday.
Equinor has been a partner in the scheme, near the Arctic Circle, since 1996. The project accounted for around 25,000 barrels of oil equivalent per day to Equinor.
As part of the exit from the scheme, Equinor said it had covered the decommissioning liabilities accrued and owed by Equinor over the years of operation, while complying with applicable sanctions.
It draws to a close a nearly six-month process begun in the immediately aftermath of Russia’s invasion in February, at which point Equinor said its position in the country had become “untenable”.
With the conclusion of the agreement, the group confirmed it has no remaining assets or projects in Russia.
The decision has resulted in the Oslo-listed company taking an impairment of just under $1.1 billion, according to its quarterly results of 31 March 2022.
Meanwhile, last month oilfield services giant Baker Hughes confirmed the sale of its Russian arm to its local management team.
The company said the new business will operate independently of the wider Baker Hughes group, including adopting an independent brand, and will assume all of the firm’s current oilfield services Russia assets, liabilities and commercial obligations.
Recommended for you
