Sanctions are working: oil and gas companies have lost $40 billion after leaving the Russian Federation

Western oil and gas companies lost about $40 billion in the first quarter of 2022.

BP posted the largest loss. According to Wood Mackenzie, after exiting business in Russia, the company wrote off $ 25.5 billion. The company sold a 19.75 percent stake in Rosneft, and also abandoned joint projects in Russia.

Following is the French company TotalEnergies, which reported a loss of 4.1 billion dollars. According to company representatives, EU sanctions prohibit the export of technology and equipment for natural gas liquefaction projects. And this creates additional risks for the implementation of the Arctic LNG 2 project.

At the same time, the exit from the project in TotalEnergies has not yet been announced. Now the company is busy getting clarifications from the European Union regarding the sanctions. Depending on this, TotalEnergies’ participation in Arctic LNG 2 could drop significantly in the second quarter. But again, do not stop completely.

Anglo-Dutch Shell in its first quarter reports estimated the cost of exiting Russian assets at $3.9 billion. The American company ExxonMobil has estimated the loss from withdrawing from the Sakhalin-1 project at $3.4 billion.

Germany’s Wintershall Dea AG and Austria’s OMV have reported impairments of around a billion euros each. And the Norwegian company Equinor reported a loss of $1.08 billion.

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