ExxonMobil becomes the third oil major to exit Russia oil and gas operations over Putin’s invasion of Ukraine.
ExxonMobil has been developing three oil and gas fields near the eastern Russian island of Sakhalin in partnership with Rosneft, the state-controlled energy company, and one company each from Japan and India. Exxon operates the fields and owns 30% of the project, which generates about 2% of the company’s global production.
The decision will see ExxonMobil pull out of managing production facilities on Sakhalin Island in Russia’s Far East and puts the fate of a proposed multi-billion dollar liquefied natural gas (LNG) facility there in doubt.
The company released the following statement:
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.
We are deeply saddened by the loss of innocent lives and support the strong international response. We are fully complying with all sanctions.
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.
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.
Given the current situation, ExxonMobil will not invest in new developments in Russia.
