The Sakhalin-1 project produces oil off the coast of Sakhalin Island in the Russian Far East, exporting about 273,000 barrels per day of a grade of crude oil known as Russian Sokol.
In early March, ExxonMobil said it would discontinue operations at Sakhalin-1 and make no new investments in Russia in response to invasion of Ukraine.
Reuters reported that project stakeholders at Sakhalin-1, which include ExxonMobil, India’s Oil and Natural Gas Corp (ONGC), are having difficulty chartering tankers to ship oil out of a region that generally needs ice vessels to navigate the journey.
That is largely due to increasing concerns from shippers over reputation risk and the increasing difficulty for Russian assets to find insurance coverage.
A spokesperson said in response to an e-mail query from Reuters:
- As a result, Exxon Neftegas Ltd has curtailed crude oil production
BP, Shell and Equinor, have all announced plans to pull out of their partnerships in Russia.
TotalEnergies has also condemned Russia for its «military aggression against Ukraine» and will not provide capital for new projects in Russia.
TotalEnergies yesterday reported it took a $4.1 billion write-down on its flagship Russian gas project, Arctic LNG 2 and indicated that it may belatedly join its peers in pulling back from the country 2 months after the invasion of Ukraine.