ExxonMobil is beginning the process of discontinuing operations to exit the Sakhalin-1 venture in response to Russia’s military action in Ukraine.
In its statement, the corporation is condemning Russia for violating the territorial integrity of Ukraine and for endangering its people.
“We are deeply saddened by the loss of innocent lives and support the strong international response. We are fully complying with all sanctions”, reads the ExxonMobil press statement.
Furthermore, given the current situation, ExxonMobil has made a decision not to invest in new developments in Russia.
“As an operator of Sakhalin-1, we have an obligation to ensure the safety of people, protection of the environment and integrity of operations. Our role as operator goes beyond an equity investment. The process to discontinue operations will need to be carefully managed and closely coordinated with the co-venturers in order to ensure it is executed safely.”
ExxonMobil operates the Sakhalin-1 project on behalf of an international consortium of Japanese, Indian and Russian companies. The project itself is a consortium for the production of oil and gas on Sakhalin Island.
The decision comes right after similar ones taken by bp and Shell, exiting their shareholding in Rosneft and Gazprom entities respectively.