ExxonMobil says it will not invest in new Russian projects

US energy giant and LNG player ExxonMobil said it would no longer invest in new Russian projects, joining its peers Shell, BP, TotalEnergies, and others in doing so.

ExxonMobil said in a statement on Tuesday the company “supports the people of Ukraine as they seek to defend their freedom and determine their own future as a nation.”

“We deplore Russia’s military action that violates the territorial integrity of Ukraine and endangers its people,” the firm said.

Moreover, the company said it supports the “strong international response.” “We are fully complying with all sanctions,” ExxonMobil said.

Sakhalin-1 exit

ExxonMobil operates the Sakhalin-1 project on behalf of an international consortium of Japanese, Indian and Russian companies. The project ships oil to the international market and supplies gas to the Russian domestic market.

Also, the project partners are planning to expand the development with a new LNG plant, leveraging the existing logistical synergies and the marine infrastructure.

The proposed Far East LNG or RFE LNG project includes a 6.2 mtpa liquefaction plant near the Sakhalin-1 De-Kastri oil export terminal in Khabarovsk Krai.

“In response to recent events, we are beginning the process to discontinue operations and developing steps to exit the Sakhalin-1 venture,” ExxonMobil said in the statement.

“As operator of Sakhalin-1, we have an obligation to ensure the safety of people, protection of the environment and integrity of operations,” ExxonMobil said, adding that its role as operator goes beyond an equity investment.

ExxonMobil said that the process to discontinue operations would need to be “carefully managed and closely coordinated with the co-venturers in order to ensure it is executed safely.”

According to ExxonMobil’s 2021 annual report, its assets in Russia have a price tag of $4.055 billion.

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