ExxonMobil pulls out of Sakhalin-1 over Russia's military action

US oil giant ExxonMobil said on Monday it will begin a phased withdrawal from Russia's Sakhalin offshore oilfield that it has operated since 1995, and condemned Russia’s military action that is said “violates the territorial integrity of Ukraine and endangers its people”.

ExxonMobil’s decision follows earlier moves by British energy majors BP and Shell to pull out of joint projects in Russia over its invasion of Ukraine. France’s TotalEnergies, however, said it would stay on in Russia although it will not invest any fresh capital there.

“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,” the company said in a statement.

ExxonMobil, which operates the Sakhalin-1 project on behalf of an international consortium of Japanese, Indian and Russian companies, said it had an obligation to ensure the safety of people, protection of the environment and integrity of operations there. “In response to recent events, we are beginning the process to discontinue operations and developing steps to exit the Sakhalin-1 venture… Given the current situation, ExxonMobil will not invest in new developments in Russia,” the Texas-based company said.

The multi-billion dollar joint venture at Sakhalin-1 features Russian state-owned company Rosneft as a key partner.

The decision also puts the fate of a proposed multi-billion dollar liquefied natural gas (LNG) facility at Sakhalin in doubt.

ExxonMobil’s announcement came on the same day as Boeing said it was joining the growing list of companies to take action over Russia’s invasion of Ukraine. The world’s biggest plane maker said it was suspending operations in Russia with immediate effect.