ExxonMobil to Extricate all Business Operations from Russia
ExxonMobil to Extricate all Business Operations from Russia

ExxonMobil to Extricate all Business Operations from Russia

  • 24-Jun-2022 5:33 PM
  • Journalist: Henry Locke

Following the U.S. oil major's earlier decision to suspend all activities in the nation, ExxonMobil, one of the largest traded worldwide oil and gas giants, is set to suspend all its operations in Russia today. The company asserted that it complies with all sanctions imposed on Russia. Numerous other Western corporations, including Boeing, BP, Shell, and Equinor, have already stopped doing business in Russia or have made preparations to do so.

The operations entails ceasing its involvement in oil and gas extraction activities off the coast of Sakhalin Island, winding down its chemical and lubricant operations there, and cutting off all further investment and collaboration with Russian energy firms. Personnel from its significant oil and gas production operations on Sakhalin Island in Russia's the Far East, notably the Sakhalin 1 project, were among the first to leave. Exxon spokesperson issued a written statement saying, "As we announced March 1, we are suspending operations and taking steps to exit the Sakhalin-1 business.

British Petroleum (BP) gave up its ownership of the Russian oil major Rosneft in February, resulting in a write-off of $25.5 billion. The import of fuel oil, partially refined oils and motor gas from Russia was already prohibited by the United States in April. Exxon Mobil recorded $5.48 billion in profits during the first quarter of 2022 due to strong global energy prices, despite the exit costing $3.4 billion.

Rosneft is likely to acquire the company's physical assets in Russia, including its onshore and offshore oil rigs. Given the existing severe sanctions against Russian energy exports, Exxon Mobil's withdrawal from Russia is anticipated to have little impact on global oil and natural gas prices. Even if these embargoes are abolished, Exxon Mobil is likely to permanently shift away from Russia as a source of income due to the possibility of fresh sanctions and to further expand its investment in further potential oil reserves. 

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