ExxonMobil Makes Russia Stance Known

ExxonMobil Makes Russia Stance Known
ExxonMobil has made its position known.

After BP, Equinor, Shell, TotalEnergies and Chevron shed more light on their stances relating to Russia, ExxonMobil has made its position known.

In an update posted on its website late Tuesday, the company revealed that it will discontinue operations at Sakhalin-1 and make no new investments in Russia.

“ExxonMobil operates the Sakhalin-1 project on behalf of an international consortium of Japanese, Indian and Russian companies. In response to recent events, we are beginning the process to discontinue operations and developing steps to exit the Sakhalin-1 venture,” ExxonMobil said in a company statement.

“As operator of Sakhalin-1, we have an obligation to ensure the safety of people, protection of the environment and integrity of operations. Our role as operator goes beyond an equity investment. The process to discontinue operations will need to be carefully managed and closely coordinated with the co-venturers in order to ensure it is executed safely,” ExxonMobil added in the statement.

“Given the current situation, ExxonMobil will not invest in new developments in Russia,” ExxonMobil continued.

The company noted that it 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. We are deeply saddened by the loss of innocent lives and support the strong international response. We are fully complying with all sanctions,” ExxonMobil added.

According to Exxon Neftegas Limited’s website, an ExxonMobil subsidiary, the Sakhalin-1 Project is one of the largest single international direct investments in Russia.

An update posted on the subsidiary’s site in May 2019 outlined that over $89 billion in taxes, royalty payments, and the state’s share of oil and gas was anticipated to be paid to the Russian state over the life of the project. The update highlighted that the development had total estimated reserves of 2.3 billion barrels of oil and 17.1 trillion cubic feet of natural gas.

Exxon Neftegas Limited has a 30 percent stake in the Sakhalin-1 Project, with the Japanese SODECO Consortium holding a 30 percent stake, ONGC Videsh Limited holding a 20 percent interest and Rosneft affiliates RN-Astra and Sakhalinmorneftegaz-Shelf holding an 8.5 percent and 11.5 percent stake, respectively, Exxon Neftegas’ site shows.

To contact the author, email andreas.exarheas@rigzone.com

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