ExxonMobil walks away from Sakhalin-1, ONGC and its partner to decide operations

The largest US oil and gas company is ending its 25-year presence in Russia following its invasion of Ukraine and subsequent international sanctions.

India’s ONGC Videsh announced it and its partners will conclude on how to keep running the Sakhalin 1 project over the next few weeks, after Exxon Mobil’s (XOM.N) judgment to exit Russia’s oil and gas sector over Moscow’s attack on Ukraine.

Exxon, with a 30% stake, has governed the plan in Russia’s Far East since production commenced in 2005. ONGC Videsh and Japan’s SODECO own 20% while the rest is held by Rosneft (ROSN.MM).

Advertisement

ONGC Videsh, the overseas investment wing of India’s top explorer Oil and Natural Gas Corp. (ONGC.NS), did not notice “any immediate influence,” on the operation of the program due to Exxon’s decision, it announced in an emailed article.

However, in the domestic market, the shares of state-owned oil exploration & production firms – Oil Natural Gas Corporation (ONGC) and Oil India – rallied up to 10 per cent on the BSE in Wednesday’s intra-day trade as oil prices rose to their highest levels since 2014.

Brent crude oil rates extensive profits as the confrontation in Ukraine escalated, fanning fears of the lower reserve from the top oil exporter. Western nations have also put out fresh sanctions on Russia in reaction to the attack on Ukraine, and Russian President Vladimir Putin reacted by putting his country’s nuclear snag on a high alert.