Shell Reviews Venture Stakes: What Investors and Entrepreneurs Need to Know About Its Impact on Oman’s Business Landscape
LONDON – Shell has initiated a review of certain investments within its Shell Ventures portfolio, with the possibility of selling stakes in a minority of the companies, according to two sources familiar with the matter.
The British oil giant is expected to retain the majority of its Ventures holdings, one source added. Shell Ventures focuses on investing in start-ups and early-stage companies specializing in areas such as power, emissions management, and mobility.
Since the appointment of CEO Wael Sawan, Shell has been streamlining its low-carbon project pipeline while intensifying its focus on liquefied natural gas (LNG) trading and upstream operations.
Established in 1996, Shell Ventures typically makes initial investments ranging from $2 million to $5 million, with total potential commitments between $10 million and $25 million over the lifespan of a company, according to the company’s website.
For a small segment of the portfolio, Shell plans to seek investors who may be better positioned to support and scale those businesses, one of the sources noted.
Earlier this month, Shell reported an 11% drop in fourth-quarter profits to the lowest level since early 2021, attributed to weaker oil prices. Despite this, the company has maintained its share buyback programme.
— Reuters
Special Analysis by Omanet | Navigate Oman’s Market
Shell’s strategic pivot to focus on liquefied natural gas and upstream operations while reviewing some low-carbon investments signals a cautious reshaping of the energy investment landscape. For Omani businesses and investors, this presents opportunities to attract divested ventures or partner in scaling niche clean-tech startups that Shell may offload. Smart entrepreneurs should monitor these shifts closely to capitalize on emerging funding and collaboration prospects as global energy majors recalibrate their portfolios.
