One more international project has been terminated on the back of “the beneficial sanctions”. Exxon Mobile Corp has to quit some joint ventures with Russia’s Rosneft. After Washington had extended sanctions against Russia’s energy sector, the US participant was forced to leave the Russian market. Exxon announced its decision at the end of 2016, however the formal exit will start this year.
In 2013, the US oil giant and Russia’s Rosneft founded several joint ventures with the aim of geological exploration and further oil extraction. Interestingly, incumbent US Secretary of State Rex Tillerson was Exxon’s chief executive at that time. From now on, the Russian partners have to work under extreme conditions without technologies provided by the US side. Last year, Exxon made desperate efforts to dodge the sanctions that entailed a hefty fine of $2 million. The US corporation signed contracts with Rosneft CEO Igor Sechin. According to flash estimates, Exxon Mobile is likely to incur net losses of $200 million as a result of the exit from Rosneft projects.
Exxon and Rosneft intended to explore and develop massive offshore oil deposits in the Kara Sea above the Arctic Circle. This project would have ensured Exxon’s long-term advance. Exxon and Rosneft spokesmen said that the Sakhalin-1 project would be unaffected. Sakhalin-1 was launched off the eastern coast of Russia before 2013.
