ExxonMobil declares force majeure on Russian operations at Sakhalin

ExxonMobil declares force majeure on Russian operations at Sakhalin

ExxonMobil said Wednesday that it has declared force majeure for its Sakhalin-1 operations in Far East Russia after it became too difficult to ship crude oil due to sanctions, reported Reuters.

The Sakhalin-1 project produces oil off the coast of Sakhalin Island in the Russian Far East, exporting about 273,000 barrels per day of a grade of crude oil known as Russian Sokol. In early March, ExxonMobil (NYSE:XOM) said it would discontinue operations at Sakhalin-1 and make no new investments in Russia in response to Vladimir Putin’s invasion of Ukraine.

Reuters reported that project stakeholders at Sakhalin-1, which include ExxonMobil and India’s Oil and Natural Gas Corp (ONGC), are having difficulty chartering tankers to ship oil out of a region that generally needs ice vessels to navigate the journey.