• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 6 days Does Toyota Know Something That We Don’t?
  • 5 days World could get rid of Putin and Russia but nobody is bold enough
  • 1 day America should go after China but it should be done in a wise way.
  • 7 days China is using Chinese Names of Cities on their Border with Russia.
  • 8 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 9 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 9 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 7 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 8 days Putin and Xi Bet on the Global South
  • 8 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 9 days United States LNG Exports Reach Third Place
  • 9 days Biden's $2 trillion Plan for Insfrastructure and Jobs

ExxonMobil Quits Russia

ExxonMobil will exit the Sakhalin-1 oil project in Russia, following the example of other Big Oil majors, including BP and Shell, who quit their Russian operations following the Russian invasion of Ukraine and the Western sanctions in response.

“ExxonMobil supports the people of Ukraine as they seek to defend their freedom and determine their own future as a nation. We deplore Russia’s military action that violates the territorial integrity of Ukraine and endangers its people,” the company said in a news release.

“We are deeply saddened by the loss of innocent lives and support the strong international response. We are fully complying with all sanctions,” Exxon also said.

The company noted that it would not be making new investments in Russia, either, and added that the process of discontinuing operations would be coordinated with its co-owners in the consortium.

The Sakhalin-1 project is managed by Exxon on behalf of its partners in the consortium, which include Japanese Sodeco, India’s ONGC Videsh, and Russia’s Rosneft.

According to the Wall Street Journal, Exxon’s pullout will be a challenging task. It would need to ensure at least critical staff is present at the project site to ensure the safe shut-down of production. What’s more, if it tries to sell its 30-percent in the project, it may have to look hard for buyers as the market for Russian assets has been squeezed overnight by sanctions.

Exxon has complied with previous sanctions on Russia, too, but they did not affect the Sakhalin-1 project. In the past two decades, the field has exported over 1 billion barrels of crude, according to the WSJ, and some 1 billion cu ft of natural gas.

Besides BP and Shell, Norway’s Equinor has also begun to wind down its business in Russia, and French TotalEnergies has announced it will not make new investments in the country, although the energy major stopped short of announcing a full exit.


By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News