FAS approved LUKOIL's request to acquire Shell Oil with a prescription

AK&M 19 May 2022 18:03

The FAS approved LUKOIL's application for the acquisition of Shell Oil LLC with a prescription. The share planned for acquisition is 99.9%, the service said in a statement.

One of the requirements of the antimonopoly authority's regulation is the regular sale of petroleum products on the stock exchange. Also, LUKOIL should not purchase petroleum products on the stock exchange during the main trading session. The requirements are aimed at developing competition in the oil products markets.

LUKOIL has signed an agreement with Shell plc's subsidiaries to acquire a 100% stake in Shell Neft LLC, which is engaged in the retail sale of petroleum products and the production of lubricants in Russia. The company's assets include 411 gas stations located mainly in the Central and North-Western Federal Districts of the Russian Federation, as well as a plant for the production of lubricants in the Tver region. 

PJSC LUKOIL (TIN 7708004767) is the second company in the Russian Federation in terms of oil production. The largest stake in the company is controlled by its management. 

LUKOIL's RAS net profit for the first half of 2021 increased by 33% to 145.56 billion rubles from 109.19 billion rubles a year earlier. Revenue increased 5 times to 910.36 billion rubles from 173.88 billion rubles, gross profit – almost 1.5 times to 241.55 billion rubles from 164.59 billion rubles, profit before tax – by 39% to 151.9 billion rubles from 109.3 billion rubles.

LUKOIL's net profit under IFRS for 2021 increased 50.9 times to 773.4 billion rubles from 15.2 billion rubles a year earlier. Sales revenue increased by 67% to 9.4 trillion rubles from 5.64 trillion rubles, EBITDA increased by 2 times to 1.4 trillion rubles from 687.1 billion rubles.

Royal Dutch Shell is a holding company of the British-Dutch Shell oil and gas concern engaged in the production, processing and marketing of hydrocarbons in more than 80 countries. In 2005, the concern underwent a radical structural reorganization: the partnership between Royal Dutch and Shell Transport and Trading, which had lasted for almost a century, was suspended, and Shell merged its corporate structure into a single holding company Royal Dutch Shell plc. The headquarters of the new company is located in The Hague. The concern is implementing several large oil and gas projects in Russia — in Salym and Sakhalin, and has also built a powerful petrochemical plant in China, supplying products to the fast-growing consumer market.

Shell is one of America's leading energy companies with a stake in 50 states, employing more than 15,000 people. Shell's portfolio of companies and interests in the United States consists of oil, natural gas, petrochemicals, gasoline, lubricants and other refined petroleum products, as well as renewable energy sources such as wind, solar energy, and vehicles such as electric vehicle charging and hydrogen. In the US, Shell is also investing in an integrated energy business that will provide electricity to millions of homes and businesses.