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May 26, 2022

Equinor withdraws from Russian joint ventures

The Norwegian energy major will also exit the Kharyaga project, located in the Timan-Pechora basin.

Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict


Equinor has exited its oil and gas joint ventures in Russia in response to Moscow’s military action against Ukraine.

The Norwegian firm has transferred all of its stakes in four Russian joint ventures to Russian company Rosneft.

Equinor has also been released from all future commitments and obligations.

The company signed an agreement to exit the Kharyaga project located in the Timan-Pechora basin, in the Nenets Autonomous District, 60km north of the Arctic Circle.

Equinor owned a 30% stake in the Kharyaga PSA licence. Its other partners included Zarubezhneft (40%), Total (20%), and Nenets Oil Company (10%).

Following the announcement to exit Russian operations in February 2022, three days after Russia’s invasion of Ukraine, Equinor halted all new Russia investments and ceased oil and gas products trading from the country.

The company also announced $1.08bn in impairment on its balance sheet in Q1 2022.

At the end of last year, the Norwegian firm had non-current assets worth $1.2bn in Russia.

In a press statement, Equinor said: “The exit from all joint ventures has been completed in accordance with Norwegian and EU sanctions legislation related to Russia.”

In a separate announcement, Equinor and its partners submitted a plan with the Norwegian Ministry of Petroleum and Energy to develop a cluster of gas and condensate discoveries, known as Halten East, with an investment of Nkr9bn ($940m).

Located adjacent to the Åsgard field in the Norwegian Sea, Halten East comprises six gas and condensate discoveries, and the option for another three prospects.

As per the estimates, Halten East holds recoverable reserves of almost 100 million barrels of oil equivalent. It is expected to start production in 2025.

Equinor owns a 57.7% stake in the project. Other partners include Vaar Energi (24.6%), Spirit Energy (11.8%), and Norway’s Petoro (5.9%).

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