US oil giant ExxonMobil announced on Tuesday that it will phase out the Sakhalin-1 project, a major oil field it operates in Russia on behalf of a consortium that includes Russian, Indian and Japanese companies.
“In response to recent events, we are initiating the process of closing operations and taking measures to progressively exit” this field of exploitation, the group detailed in a statement, stressing that it will not invest more in new projects in Russia.
ExxonMobil has been managing the Sakhalin-1 project since 1995, located in the east of the country and north of Japan, and owns 30% of it. The consortium comprises subsidiaries of the Russian company Rosneft, an Indian company and a Japanese company.
The US oil company thus follows the example of international companies, such as the British groups Shell and BP, which also planned to sell their participation in the numerous joint projects with Russian companies.
France’s TotalEnergies, on its side, opted for the status quo and chose not to leave Russia, although without investing in the country. ExxonMobil stressed that his retirement will not be immediate.
“As the operator of Sakhalin-1, we have an obligation to ensure the safety of people, the protection of the environment and the integrity of operations,” the group said. “The process of closing the operations will have to be carefully managed and will be coordinated with the partners in order to ensure that it is executed safely,” he added.
The Sakhalin-1 project is the only major project where ExxonMobil was present in Russia, as the group had withdrawn from two joint ventures following the imposition of previous sanctions against Russia in 2014.
The consortium indicated on its website that it has offices in Moscow and Saint Petersburg, with some 1,000 employees.
