Shell negotiating Arctic deals

The Royal Dutch Shell is negotiating with both Novatek and Rosneft over possible stakes in Arctic projects.


Just few days after Novatek signaled that it might be interested in including Norwegian oil company Statoil in its Yamal LNG project, another foreign petroleum major highlights its interest in the project. In an interview with Reuters, leader of Shell’s Russia department Charles Watson confirms that his company is negotiating with Novatek over a possible stake in the project.

Read also: Novatek considers Statoil in Yamal partnership

According to Kommersant, Shell was originally meant to become Novatek’s main partner in the Yamal LNG project. However, the two companies failed to agree about the terms of cooperation and the planned partnership subsequently dissolved. Instead, French oil company Total earlier this month grabbed a stake in the project.

Read more: Total strikes deal on Yamal LNG

It is unlikely that Novatek will include both Statoil and Shell in the LNG project.

Shell is however not only interested in the Yamal LNG. Talks are also held with Rosneft about partnership in offshore projects, Watson confirms. As previously reported, Rosneft recently signed a major deal with BP on Arctic cooperation. The state-owned company has also signaled that it wants to engage in partnership also with other foreign companies.

Read also: Rosneft seeks foreign cooperation