The financial dispute over the Sakhalin-1 project between the project's operator, US company ExxonMobil, and the Russian government is connected to the unilateral decision of the company to halt the oil output at the filed, Rosneft's representative said on Tuesday
MOSCOW (Pakistan Point News / Sputnik - 30th August, 2022) The financial dispute over the Sakhalin-1 project between the project's operator, US company ExxonMobil, and the Russian government is connected to the unilateral decision of the company to halt the oil output at the filed, Rosneft's representative said on Tuesday.
"The financial dispute between the Sakhalin-1 project participants is a result of the unilateral decision of its operator to stop production, which currently generates only losses to the PSA participants (production sharing agreements). The return to normal production activities of the Sakhalin-1 project could create the necessary conditions for resolving all controversial issues," the representative told journalists.
Earlier in the day, The Wall Street Journal reported that ExxonMobil plans to sue the Russian government for blocking the sale of its stake in the Sakhalin-1 project.
Russian President Vladimir Putin signed a decree on August 5 that specifically bans the sale of foreign shares in strategic Russian companies, primarily in the energy sector, unless authorized by the Russian government.
ExxonMobil's subsidiary remains to be the operator of the Sakhalin-1 project and owns 30% of shares. In March, the company announced its intention to withdraw from the project. In April, it declared force majeure and had significantly reduced oil and gas production in the project. On August 3, ExxonMobil announced that it was planning to transfer its operating activities on the project to another, undisclosed legal entity. Other Sakhalin-1 project's shareholders are Japan's Sodeco with 30%, India's ONGC with 20%, and Russia's Rosneft with 20%..
