The US oil company was part of a wave of Western oil companies that said they would cut ties with Russia after the Kremlin launched its invasion of Ukraine, abruptly ending a long-running effort to tap Russia’s energy wealth. But Russia’s president complicated those efforts with a decree barring energy and other companies from changing control of operations or selling stakes in certain projects until the end of 2022. In a June regulatory filing, Exxon said it was “engaged in the transition” of operations at the Sakhalin-1 oil project, its main asset in the country, to another company. That was after taking a $4.6 billion pre-tax charge on the loss of its Russian business. However, Exxon on Tuesday said its exit was “prevented by the recent presidential order” and that the company had provided a “dispute notice” to Moscow. “We announced in March our plans to exit the venture and continue to take the necessary steps to do so. Exiting is a complex process and as an operator, we must protect worker safety, the environment and operations,” the company said. The Wall Street Journal first reported Exxon’s Russia alert.

“It’s the company’s right,” Dmitry Peskov, Putin’s spokesman, told the Financial Times. “On the other hand, there are the Russian laws” that limit Exxon’s ability to continue its exit, he said. The “dispute notice” will trigger negotiations between Exxon and Russian officials over the company’s proposed exit from the venture. Those talks could last until the end of the year. If there is no resolution, Exxon could then take its case to international arbitration, where it could seek financial compensation as well as the ability to abandon the project. BP, Shell and Total are among Western oil companies that have said they plan to leave Russia since the start of the war in Ukraine, but have been mired in legal and operational difficulties that have in some cases prevented a swift exit. The Sakhalin-1 project produced about 220,000 barrels of oil per day before the war, making it one of the largest western projects in Russia. But Exxon declared force majeure on the project in April as sanctions prevented normal operations. Production has since dipped to about 10,000 b/d along with some associated natural gas production. The project’s operators have kept oil and gas flowing in part because it provides power to local communities around Sakhalin Island in Russia’s Far East region, according to a person familiar with its operations. There are also concerns about the region’s bitterly cold winter, which could require production to be increased or the project shut down to prevent damage, the person said. Exxon has a 30 percent stake in Sakhalin-1. Its partners in the project include Russian state oil producer Rosneft, Japan’s Sodeco and India’s state-backed ONGC Videsh. The Japanese and Indian companies, which hold 30 percent and 20 percent stakes respectively, are not subject to the same sanctions regime as Exxon, and both countries have continued to import Russian fuel. In July, Putin ordered the nationalization of the Sakhalin-2 project, which was developed in part by Shell. Analysts expected further nationalizations as Western companies seek to exit and speculated that energy companies from Moscow’s ally China could move in to secure access to Russia’s oil and gas fields. Additional reporting by Max Seddon in Riga

title: “Exxonmobil Is Challenging The Kremlin S Order Preventing It From Pulling Out Of Russia Klmat” ShowToc: true date: “2022-11-15” author: “Glenda Langley”

The US oil company was part of a wave of Western oil companies that said they would cut ties with Russia after the Kremlin launched its invasion of Ukraine, abruptly ending a long-running effort to tap Russia’s energy wealth. But Russia’s president complicated those efforts with a decree barring energy and other companies from changing control of operations or selling stakes in certain projects until the end of 2022. In a June regulatory filing, Exxon said it was “engaged in the transition” of operations at the Sakhalin-1 oil project, its main asset in the country, to another company. That was after taking a $4.6 billion pre-tax charge on the loss of its Russian business. However, Exxon on Tuesday said its exit was “prevented by the recent presidential order” and that the company had provided a “dispute notice” to Moscow. “We announced in March our plans to exit the venture and continue to take the necessary steps to do so. Exiting is a complex process and as an operator, we must protect worker safety, the environment and operations,” the company said. The Wall Street Journal first reported Exxon’s Russia alert.

“It’s the company’s right,” Dmitry Peskov, Putin’s spokesman, told the Financial Times. “On the other hand, there are the Russian laws” that limit Exxon’s ability to continue its exit, he said. The “dispute notice” will trigger negotiations between Exxon and Russian officials over the company’s proposed exit from the venture. Those talks could last until the end of the year. If there is no resolution, Exxon could then take its case to international arbitration, where it could seek financial compensation as well as the ability to abandon the project. BP, Shell and Total are among Western oil companies that have said they plan to leave Russia since the start of the war in Ukraine, but have been mired in legal and operational difficulties that have in some cases prevented a swift exit. The Sakhalin-1 project produced about 220,000 barrels of oil per day before the war, making it one of the largest western projects in Russia. But Exxon declared force majeure on the project in April as sanctions prevented normal operations. Production has since dipped to about 10,000 b/d along with some associated natural gas production. The project’s operators have kept oil and gas flowing in part because it provides power to local communities around Sakhalin Island in Russia’s Far East region, according to a person familiar with its operations. There are also concerns about the region’s bitterly cold winter, which could require production to be increased or the project shut down to prevent damage, the person said. Exxon has a 30 percent stake in Sakhalin-1. Its partners in the project include Russian state oil producer Rosneft, Japan’s Sodeco and India’s state-backed ONGC Videsh. The Japanese and Indian companies, which hold 30 percent and 20 percent stakes respectively, are not subject to the same sanctions regime as Exxon, and both countries have continued to import Russian fuel. In July, Putin ordered the nationalization of the Sakhalin-2 project, which was developed in part by Shell. Analysts expected further nationalizations as Western companies seek to exit and speculated that energy companies from Moscow’s ally China could move in to secure access to Russia’s oil and gas fields. Additional reporting by Max Seddon in Riga

title: “Exxonmobil Is Challenging The Kremlin S Order Preventing It From Pulling Out Of Russia Klmat” ShowToc: true date: “2022-11-24” author: “Steven Morris”

The US oil company was part of a wave of Western oil companies that said they would cut ties with Russia after the Kremlin launched its invasion of Ukraine, abruptly ending a long-running effort to tap Russia’s energy wealth. But Russia’s president complicated those efforts with a decree barring energy and other companies from changing control of operations or selling stakes in certain projects until the end of 2022. In a June regulatory filing, Exxon said it was “engaged in the transition” of operations at the Sakhalin-1 oil project, its main asset in the country, to another company. That was after taking a $4.6 billion pre-tax charge on the loss of its Russian business. However, Exxon on Tuesday said its exit was “prevented by the recent presidential order” and that the company had provided a “dispute notice” to Moscow. “We announced in March our plans to exit the venture and continue to take the necessary steps to do so. Exiting is a complex process and as an operator, we must protect worker safety, the environment and operations,” the company said. The Wall Street Journal first reported Exxon’s Russia alert.

“It’s the company’s right,” Dmitry Peskov, Putin’s spokesman, told the Financial Times. “On the other hand, there are the Russian laws” that limit Exxon’s ability to continue its exit, he said. The “dispute notice” will trigger negotiations between Exxon and Russian officials over the company’s proposed exit from the venture. Those talks could last until the end of the year. If there is no resolution, Exxon could then take its case to international arbitration, where it could seek financial compensation as well as the ability to abandon the project. BP, Shell and Total are among Western oil companies that have said they plan to leave Russia since the start of the war in Ukraine, but have been mired in legal and operational difficulties that have in some cases prevented a swift exit. The Sakhalin-1 project produced about 220,000 barrels of oil per day before the war, making it one of the largest western projects in Russia. But Exxon declared force majeure on the project in April as sanctions prevented normal operations. Production has since dipped to about 10,000 b/d along with some associated natural gas production. The project’s operators have kept oil and gas flowing in part because it provides power to local communities around Sakhalin Island in Russia’s Far East region, according to a person familiar with its operations. There are also concerns about the region’s bitterly cold winter, which could require production to be increased or the project shut down to prevent damage, the person said. Exxon has a 30 percent stake in Sakhalin-1. Its partners in the project include Russian state oil producer Rosneft, Japan’s Sodeco and India’s state-backed ONGC Videsh. The Japanese and Indian companies, which hold 30 percent and 20 percent stakes respectively, are not subject to the same sanctions regime as Exxon, and both countries have continued to import Russian fuel. In July, Putin ordered the nationalization of the Sakhalin-2 project, which was developed in part by Shell. Analysts expected further nationalizations as Western companies seek to exit and speculated that energy companies from Moscow’s ally China could move in to secure access to Russia’s oil and gas fields. Additional reporting by Max Seddon in Riga

title: “Exxonmobil Is Challenging The Kremlin S Order Preventing It From Pulling Out Of Russia Klmat” ShowToc: true date: “2022-12-01” author: “Ronald Hill”

The US oil company was part of a wave of Western oil companies that said they would cut ties with Russia after the Kremlin launched its invasion of Ukraine, abruptly ending a long-running effort to tap Russia’s energy wealth. But Russia’s president complicated those efforts with a decree barring energy and other companies from changing control of operations or selling stakes in certain projects until the end of 2022. In a June regulatory filing, Exxon said it was “engaged in the transition” of operations at the Sakhalin-1 oil project, its main asset in the country, to another company. That was after taking a $4.6 billion pre-tax charge on the loss of its Russian business. However, Exxon on Tuesday said its exit was “prevented by the recent presidential order” and that the company had provided a “dispute notice” to Moscow. “We announced in March our plans to exit the venture and continue to take the necessary steps to do so. Exiting is a complex process and as an operator, we must protect worker safety, the environment and operations,” the company said. The Wall Street Journal first reported Exxon’s Russia alert.

“It’s the company’s right,” Dmitry Peskov, Putin’s spokesman, told the Financial Times. “On the other hand, there are the Russian laws” that limit Exxon’s ability to continue its exit, he said. The “dispute notice” will trigger negotiations between Exxon and Russian officials over the company’s proposed exit from the venture. Those talks could last until the end of the year. If there is no resolution, Exxon could then take its case to international arbitration, where it could seek financial compensation as well as the ability to abandon the project. BP, Shell and Total are among Western oil companies that have said they plan to leave Russia since the start of the war in Ukraine, but have been mired in legal and operational difficulties that have in some cases prevented a swift exit. The Sakhalin-1 project produced about 220,000 barrels of oil per day before the war, making it one of the largest western projects in Russia. But Exxon declared force majeure on the project in April as sanctions prevented normal operations. Production has since dipped to about 10,000 b/d along with some associated natural gas production. The project’s operators have kept oil and gas flowing in part because it provides power to local communities around Sakhalin Island in Russia’s Far East region, according to a person familiar with its operations. There are also concerns about the region’s bitterly cold winter, which could require production to be increased or the project shut down to prevent damage, the person said. Exxon has a 30 percent stake in Sakhalin-1. Its partners in the project include Russian state oil producer Rosneft, Japan’s Sodeco and India’s state-backed ONGC Videsh. The Japanese and Indian companies, which hold 30 percent and 20 percent stakes respectively, are not subject to the same sanctions regime as Exxon, and both countries have continued to import Russian fuel. In July, Putin ordered the nationalization of the Sakhalin-2 project, which was developed in part by Shell. Analysts expected further nationalizations as Western companies seek to exit and speculated that energy companies from Moscow’s ally China could move in to secure access to Russia’s oil and gas fields. Additional reporting by Max Seddon in Riga