Exxon's top official reveals potential Russian investment of approximately $4.6 billion in assets.
The Sakhalin-1 project, a significant oil and gas venture in Russia, may see the return of American energy giant ExxonMobil. This potential development follows a series of negotiations and decree amendments between the Russian government and ExxonMobil.
According to Boris Titov, President Putin's special representative for relations with international organizations, large and small US companies are ready to return to Russia once political issues are resolved. This readiness is reflected in the case of ExxonMobil, as the company announced its exit from the Sakhalin-1 project in 2022, citing the seizure of its assets.
The Russian government has been actively working towards resolving this dispute as a prerequisite for any potential return by ExxonMobil. A presidential decree has been issued, outlining the conditions for the American company's participation, should they choose to resume cooperation.
The decree modifies the resignation of ExxonMobil as the operator of the Sakhalin-1 project by suspending the operator change and allowing the possibility to resume cooperation. The aim is to stabilize the project and maintain its operational continuity.
The decree also amends a decree from October 7, 2022, on the creation of a Russian operator for the Sakhalin-1 project, which received the rights and obligations of Exxon Neftegaz, which owned a 30% stake. This amendment effectively replaces Exxon's role as the majority stakeholder.
Negotiations between Exxon and the Russian government began in early 2023, with rumors about Exxon's potential return to the Sakhalin-1 project emerging after a meeting between the presidents of Russia and the US on August 15 in Alaska. These rumors gained traction when the governor of the Sakhalin region, Valery Limarenko, announced a "breakthrough" in the possibility of ExxonMobil returning to the project.
It's important to note that Exxon's CEO has confirmed that no talks about new investments are taking place. This suggests that any potential return by ExxonMobil would be focused solely on resolving the dispute related to the seizure of its assets, rather than expanding its presence in Russia.
The negotiations and the potential return of ExxonMobil to the Sakhalin-1 project could signal a potential easing of tensions between Russia and the US, at least in terms of energy cooperation. However, it's too early to draw definitive conclusions, as the negotiations are ongoing, and Exxon has made it clear that it has no plans for new investments in Russian projects.
For updates on this developing situation, follow the Telegram channel @expert_mag.
