ExxonMobil starts winding up Sakhalin-1 operations
ExxonMobil announced on March 1 it had begun winding up its operations at the Sakhalin-1 oil project in the Russian Far East and was taking steps to withdraw from the venture in light of Moscow's invasion of Ukraine.
Sakhalin-1 is one of the oldest and most successful international oil and gas ventures in Russia. ExxonMobil signed a production-sharing agreement for the project with Russia's state-owned Rosneft in 1995.
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Comprising the Chayvo, Odoptu and Arkutun-Dagi fields off the east coast of Sakhalin Island, Sakhalin-1 produced around 230,000 barrels/day of oil and more than 12bn m3 of gas in 2021, according to Russia's energy ministry. ExxonMobil operates the project with a 30% interest, while Rosneft has 20%, Japanese consortium SODECO has 30% and India's ONGC Videsh has 20%.
ExxonMobil said it "supports the people of Ukraine as they seek to defend their freedom and determine their own future as a nation" and "deplores Russia's military action that violates the territorial integrity of Ukraine and endangers its people."
The US major added it would not invest in any new projects in Russia.