Exxon Mobil Corp. flagged that it will join major rivals in pulling out Russia as pressure mounts on the global energy giant to react decisively to Ukraine’s invasion.
Exxon said in a statement that the manufacturer, which holds a 30% stake in the Sakhalin-1 offshore oil venture in Russia’s Far East, will take steps to cease operations and exit the project. No time frame was given for actually stopping production at the plant, which the oil major operates and has its only remaining oil-producing assets in Russia.
“Given the current situation, ExxonMobil will not invest in new development in Russia,” the company said, ending decades-long ties with a country that was once seen as an important, long-term growth engine.
In just a few days, the world’s top energy producers have flagged a plan to pull out of Russian investments at a potential cost of tens of billions of dollars, and maintain ties with Moscow that have been cultivated for decades. The pre-sanctions round, collected by former chief executive Rex Tillerson, wiped out a vast portfolio of Exxon’s drilling prospects.
The company said the exit process from Sakhalin-1, which last year produced about 227,000 barrels per day, would be done carefully with its partners. These include units of Russia’s state-backed Rosneft PJSC, India’s ONGC Videsh Limited and Sakhalin Oil and Gas Development Company, a consortium that includes Japan Petroleum Exploration Company, Japan National Oil Corp, Itochu Corp and Marubeni Corp.
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