WASHINGTON, Oct 17 – PRIME The American oil and gas company Exxon Mobil Corp completely left Russia, Reuters reports citing its official representative.
The company reportedly said Russian authorities “unilaterally liquidated” its stake in the Sakhalin-1 oil and gas project.
“We have made every effort to engage with the Russian government and other participants,” a spokesman quoted Reuters as saying the procedure was a “safe exit” from the local market.
The company declined to clarify whether it received compensation for the assets, which are valued at more than $4 billion, and whether it intends to contest the losses through international arbitration.
The former operator of Sakhalin-1, Exxon Neftegaz Limited (a subsidiary of Exxon Mobil), which owns a 30% stake, announced in March its intention to withdraw from the project, and in April it introduced a force majeure regime, as a result of which production oil and gas was first reduced and then completely stopped. Other participants in Sakhalin-1 are Rosneft (20%), Japanese Sodeco (30%) and Indian ONGC (20%).
As a result, a week ago Russian President Vladimir Putin issued a decree ordering the government to create a new Russian operator of Sakhalin-1, which would take over the rights and obligations of Exxon Neftegaz Limited. The new Sakhalin-1 operator will be managed by the Rosneft structure Sakhalinmorneftegaz-Shelf, at least until all the stakes in the operator are distributed, after which the authority of the structure can be extended.