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Jeroen van der Veer: Shell is among the largest investors in the Russian economy

 

 

Jeroen van der Veer: Shell is among the largest foreign investors in the Russian economy

13:54 | 0506/ 2008

 

Royal Dutch Shell chief executive officer Jeroen van der Veer gave an interview to RIA Novosti ahead of his participation in the St. Petersburg International Economic Forum
Why are you taking part in the Economic Forum of St Petersburg?

The St. Petersburg Forum is the most important annual event of its kind in Russia. Some call it the “Russian Davos” as it brings together key public officials, policy-makers, business people, etc. I will be taking  part in the St. Petersburg Forum  for the third time.
 
Is the Forum also of importance in relation to Shell’s activities in the Russian Federation and in what context?

Russia is of strategic importance for Shell, both upstream and downstream, as a major global hydrocarbon resource holder and a growing market for consumer and industrial products and services. Shell is ready to work in partnership with Russian companies in forms of cooperation acceptable to the Russian Government. The Forum provides a unique  opportunity to directly engage with key decision makers.

Who do you want to meet with to have discussions during the Forum?

The new President Dmitri Medvedev, ministers and Russian business partners.

 What is the status of Shell’s business activities in Russia?

Today Shell is among the largest foreign investors in the Russian economy. Currently, Shell companies and joint ventures in Russia operate across the whole range of its business areas: from exploration, production and transportation of oil and gas to marketing of lubricants, chemicals, oil products, oils for motorists and industrial oil, as well as construction and operation of retail networks.

Shell projects in Russia involve the development of Sakhalin II Project offshore Sakhalin island together with OAO Gazprom, Mitsui and Mitsubishi, and the development of the Salym oil fields   (Khanty-Mansi autonomous okrug), jointly with OAO NK Evikhon, a subsidiary of Sibir Energy. Shell also participates in Caspian Pipeline Consortium.

The group’s activity in Russia is not limited only to the  development of oil and gas fields – Shell aims to actively expand its other businesses. Shell is involved in the  marketing of chemicals and lubricants for industry and commercial vehicles. Shell meets 20% of Russia’s demand for imported motor oils which are to be sold via an extensive network of distributors, from Kaliningrad to Vladivostok.

Shell is one of the largest off-takers of Russian crude. A network of  Shell retail stations is operated in 5 Russian regions while Shell and Aerofuels JV provides aircraft refuelling services at Moscow’s Domodedovo airport. Besides, Shell provides integrated consultancy services for oil and gas industry, including catalyst technology and new product development.

What future plans does Shell have in Russia?

Our upstream strategy focuses on exploring growth opportunities within the AMI with Gazprom in Sakhalin; increasing  our position in West Siberia, building on Salym oil success. Last year we signed a broad-ranging strategic cooperation agreement with Rosneft. We have recently setup a strategic partnership agreement with Tatneft for heavy oil development in Tatarstan where Shell was selected from a number of companies on the basis of its competitive strength. We also consider exploration in Russia as a significant future growth opportunity.

In the downstream, we want to further strengthen our current leadership position amongst international lubricants suppliers in both automotive and industrial market sectors and continue to grow our retail business.

 

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