BP quits Russia in up to $25 billion hit after Ukraine invasion via /r/wallstreetbets


BP quits Russia in up to $25 billion hit after Ukraine invasion

BP quits Russia in up to $25 billion hit after Ukraine invasion | Reuters

LONDON, Feb 27 (Reuters) – BP is abandoning its stake in Russian oil giant Rosneft in an abrupt and costly end to three decades of operating in the energy-rich country, marking the most significant move yet by a Western company in response to Moscow’s invasion of Ukraine.

Rosneft accounts for around half of BP’s oil and gas reserves and a third of its production and divesting the 19.75% stake will result in charges of up to $25 billion, the British company said, without saying how it plans to extricate itself.

BP chief executive Bernard Looney to resign from board of Rosneft with immediate effect

Helge Lund, BP chair, says the company has operated in Russia for over 30 years with “brilliant Russian colleagues” but says the invasion represents a fundamental change: “Russia’s attack on Ukraine is an act of aggression which is having tragic consequences across the region.”

Bernard Looney, chief executive: “I have been deeply shocked and saddened by the situation unfolding in Ukraine…..our immediate priority is caring for our great people in the region….and looking at how BP can support the wider humanitarian effort”

– That’s a big hit. Not really clear if they can just sell this stake. Could be a big hit for the shareholders.One estimate i read is that it reduces the future free cash flow with 10%. For comparison: Deep water Horizon disaster costed the company $64 billion (so far).

Submitted February 27, 2022 at 09:37PM by dreddie27
via reddit