Exxon Mobil Completely Exits Russia After Assets Seized

(RTTNews) - Exxon Mobil announced on Monday that it had fully exited Russia, with the energy giant saying that President Vladimir Putin had expropriated its assets in the country and "unilaterally terminated" the company's Sakhalin-1 oil project.

"With two decrees, the Russian government has unilaterally terminated our interests in Sakhalin-1, and the project has been transferred to a Russian operator," an Exxon Mobil spokeswoman said.

The spokesperson didn't disclose whether Exxon received compensation for the assets, but added that Exxon plans to reserve its legal rights under international law and its production-sharing agreement to pursue remedies.

Russia's move to seize Exxon's assets come after seven months of negotiations over a transfer of the company's stake in the Sakhalin-1 project, as per reports, which first reported on Exxon's move to complete its withdrawal from the country.

In March, the energy giant announced it will leave Russia in response to the nation's invasion of Ukraine and that it would not make any new investments in Russia.

Exxon's Russia holdings were valued at more than $4 billion as of 2021, according to company documents. The Sakhalin-1 project, which Exxon has managed since 2005, has generated $16 billion for the Russian government, according to Exxon.

Earlier this year, Exxon took a $3.4 billion after-tax charge for its Sakhalin-1 assets. It also said that the operations represented less than 2 percent of its total 2021 production, or about 65,000 barrels per day, and 1 percent of its operating earnings.