Exxon Ratified Budget For Sakhalin-1

A dispute between Russian officials and the world's largest publicly traded oil producer over costs and plans caused the suspension at the project, which is operated under a production-sharing agreement.

The Authorized State Body, an oversight body led by the Energy Ministry, approved Sakhalin-1's budget and work plans for the year but demanded that Exxon provide extra explanations for some spending, the ministry said in a statement. The decision allows the project to proceed, it said.

Approvals for the budgets and work plans for the other two consortiums operating under PSAs, Gazprom-led Sakhalin-2 and France's Total-led Kharyaga, also came later than usual — in early February and late March, respectively. Even so, those projects did not halt development.