January 29, 2023

Exxon to exit Russia and suspend more investments

Exxon to exit Russia and suspend more investments

The ExxonMobil logo at the Rio Oil and Gas Exhibition and Conference in Rio de Janeiro, Brazil, September 24, 2018. REUTERS/Sergio Moraes

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HOUSTON, March 1 (Reuters) – ExxonMobil (XOM.N) It said on Tuesday it would exit its operations in Russia, including oil production fields, becoming the latest major Western energy company to leave the oil-rich country in the wake of Moscow’s invasion of Ukraine.

The decision includes operations on a large oil and gas production project on Sakhalin Island in Russia’s Far East. British BP PLC, Shell and Norway’s Equinor ASA (EQNR.OL) It has previously revealed plans to abandon Russia’s operations.

“Given the current situation, ExxonMobil will not invest in new developments in Russia,” the company said in a statement.

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Exxon did not provide an exit timeline, nor did it comment on any potential asset writedowns.

The company condemned the Russian attack and said it supports the people of Ukraine.

“We condemn Russia’s military action that violates Ukraine’s territorial integrity and endangers its people,” Exxon said.

Reuters previously reported that Exxon has begun removing US-based employees from Russia, based on two people familiar with the matter.

According to its website, last year Exxon employed more than 1,000 people across Russia and has offices in Moscow, Saint Petersburg, Yekaterinburg and Yuzhno-Sakhalinst.

It was not clear on Tuesday how many foreign employees would be evacuated. A person familiar with the matter said that the company sent a plane to Sakhalin Island to retrieve employees.

Exxon operates three large offshore oil and gas fields with operations based on Sakhalin Island on behalf of an international consortium of Japanese, Indian and Russian companies. It was submitting plans to add an on-site LNG export terminal.

said Anish Kapadia, Principal at Energy and Consultants Mining Researcher Pallissy.

The company, which has been developing Russian oil and gas fields since 1995, has come under pressure to sever ties with Russia due to Moscow’s invasion of Ukraine. Russia describes its actions in Ukraine as a “special operation.”

The Sakhalin facility, which Exxon has operated since starting production in 2005, represents one of the largest single direct investments in Russia, according to a project description on Exxon’s website. The operation pumped up to 300,000 barrels per day of oil and gas.

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(Reporting by Gary McWilliams) Editing by Jonathan Otis, Grant McCall and Kenneth Maxwell

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