Exxon to Pull Out of $4 Billion Russia Business
- March 2, 2022
- Posted by: Quatro Strategies
- Category: Politics
ExxonMobil announced its exit from Russia, leaving more than $4 billion of oil and gas operations in the country. The company also halted new investment as a result of Russia’s invasion of Ukraine. The decision means Exxon will pull out of large oil and gas production facilities on Sakhalin Island in Russia’s far east, and puts a proposed multi billion dollar LNG facility there in question.
Exxon’s exit follows dozens of other Western companies, including fossil fuel giants BP, Shell and Equinor, which have halted business or abandoned operations in Russia.
Exxon’s total Russian assets were valued at $4.055 billion in its latest annual report in February. The company did not reveal a timetable for its exit or how much asset it would scratch.
Exxon operates three large offshore oil and gas fields off Sakhalin Island on behalf of a consortium of Japanese, Indian and Russian companies that included Russia’s Rosneft. The group had been planning to add an LNG export terminal on the island.
Exxon’s Russian business is relatively small compared to its wider enterprise and does not have the same significance as it has to BP or TotalEnergies.
The company has come under pressure to cut ties with Russia following the invasion of Ukraine. It has been operating in Russian oil and gas fields since 1995.
Subscribe to Top Insights Today
The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights
Join the ranks of global executives and subscribe to Top Insights Today
Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business