Shell turning to China to offload Russian business - report

(Sharecast News) - Shell is reportedly looking to China as it looks to offload its Russian business.

Bloomberg cited people with knowledge of the matter as saying that China's key state-run energy companies are in talks with Shell to buy its stake in a major Russian gas export project.

Cnooc, CNPC and Sinopec Group are in joint discussions with Shell over the company's 27.5% holding in the Sakhalin-2 liquefied natural gas venture after the European firm said it would exit Russian operations following the Ukraine invasion, according to Sky sources.

It was understood that discussions are at an early stage and it remains possible no deal will be agreed with the firms. Shell is also open to talks with other potential buyers outside of China.

The talks include a potential sale of the stake to one of the Chinese companies, to two of the firms, or to a consortium of all three.

Shell declined to comment to Bloomberg, while representatives for China National Offshore Oil Corp., China National Petroleum Corp. and China Petrochemical Corp. didn't immediately respond to requests for comment.

China's State-owned Assets Supervision and Administration Commission of the State Council, which supervises state-owned firms, also didn't immediately respond to a request for comment.