ExxonMobil is discontinuing operations at Sakhalin-1, and will make no new investments in Russia. ExxonMobil operates the Sakhalin-1 project on behalf of an international consortium of Japanese, Indian and Russian companies. (Earlier post.)

In response to the situation in Ukraine, the company is beginning the process to discontinue operations and developing steps to exit the Sakhalin-1 venture.

ExxonMobil supports the people of Ukraine as they seek to defend their freedom and determine their own future as a nation. We deplore Russia’s military action that violates the territorial integrity of Ukraine and endangers its people.

As 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 statement

The sub-artic Sakhalin-1 Project is one of the largest single international direct investments in Russia. Although discovered several decades ago, the Sakhalin-1 fields were not developed until new technologies became available as a result of successful partnership between Russian and international companies.

The International Consortium Sakhalin-1 includes members from four countries:

• The Project Operator is Exxon Neftegas Limited, an ExxonMobil Corporation (USA) subsidiary, which has a 30% stake in the Sakhalin-1 Project

• The Russia party is represented by two Rosneft affiliates: RN-Astra (8.5%) and Sakhalinmorneftegaz-Shelf (11.5%)

• The Japanese SODECO Consortium has a 30% interest

• ONGC Videsh Limited, India’s Oil and Natural Gas Corporation has 20% interest

The group had recently been advancing plans to add a LNG export terminal at the site.

The fields in Sakhalin-1 have total estimated reserves of 2.3 billion barrels of oil (307 million tons) and 17.1 trillion cubic feet of natural gas (485 billion cubic meters).