Page 13 - FSUOGM Week 42 2022

FSUOGM PROJECTS & COMPANIES FSUOGM

ExxonMobil sees abrupt Russian exit,

saying assets expropriated

RUSSIA EXXONMOBIL confirmed to multiple media in oil exports to ExxonMobil’s refusal to accept
on October 17 that it had had its assets in Rus- local insurance for tankers. Western insurers
The development sia expropriated, marking an abrupt end to the stopped covering tankers operated by Russian
marks an abrupt end nearly three decades that the US major has been state shipping firm Sovcomflot, after it was
to ExxonMobil’s almost working in the country. blacklisted under Western sanctions.
three decades of The company entered Russia in 1995, secur- Russia’s government ordered the transfer of
working in Russia. ing operatorship of the Sakhalin-1 oil project operatorship of Sakhalin-1 earlier this month to
in the Russian Far East – often cited as one of a new operator also known as Sakhalin-1. Pre-
the most successful international oil ventures in viously, besides ExxonMobil and Rosneft, other
Russian history. In a statement, a company rep- partners at Sakhalin-1 include India’s ONGC
resentative said that “with two decrees, the Rus- Videsh Ltd (OVL) and Japanese consortium
sian government has unilaterally terminated our SODECO. It is currently uncertain whether
interest in Sakhalin-1 and the project has been they will be permitted to keep their stakes in the
transferred to a Russian operator.” venture.
ExxonMobil itself announced it would pull Japan’s government said on October 18 it was
out of Russia in the wake of the start of Moscow’s still analysing details of the Russian decree and
invasion of Ukraine in late February. But Russia would continue engaging with former share-
later passed a law that prevented the sale of Exx- holders. Japanese Industry Minister Yasutoshi
onMobil’s 30% interest in Sakhalin-1, prompt- Nishimura stressed the government’s desire to
ing the company to threaten legal proceedings. retain a Japanese presence at the project, which
Meanwhile Rosneft, another partner at Sakha- he described as “very important” for Japan.
lin-1, accused the US major in May of causing a The government of India has meanwhile
steep drop in the project's output. According to said it is maintaining a “healthy dialogue” with
Russian media reports, it fell from a pre-war level Moscow and would see what the Russian gov-
of 220,000 barrels per day to a mere 10,000 bpd. ernment offered following the change in Sakha-
Reuters this week attributed the drastic cut lin-1’s ownership. ™

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