HomeMediaLatest NewsExxonMobil completely left Russia after the creation of a new operator of the Sakhalin-1 project

ExxonMobil completely left Russia after the creation of a new operator of the Sakhalin-1 project

18 October 2022

Belogoryev Alexey M. Deputy Principal Director on Energy Studies, Director of the Center for Energy strategic analysis and forecasting

Alexey Belogoryev, Deputy Principal Director on Energy Studies of the Institute for Energy and Finance, commented to the Business FM radio station on the consequences of ExxonMobil's exit from the Sakhalin-1 project and the risks of other foreign participants leaving:

“The fact that Exxon would leave was known back in March, the company did not hide its plans, regardless of the legal changes that have taken place in recent months on the Russian initiative. The consequences will be more of a technological nature, because Sakhalin-1 faces serious challenges precisely in terms of exploration. It is necessary to use new technological solutions there, although the main investment stage has already passed, but in order to maintain production at a more or less sustainable level, new approaches must be used. How far this can be done without international participation, at least without Western participation, is an open question, but I do not think that Exxon's role would be decisive and that without Exxon it will not be possible at all to solve the problems that the project faces. Therefore, I do not see a big problem, although in general the exodus of foreign companies from the Russian fuel and energy complex is a path of slow technological and organizational degradation. In general, this is a negative factor. But in the case of Sakhalin-1, I don't think that anything will fundamentally change. Japan has a clear position, the government and the company, that it is necessary to hold on tightly to those shares that are in Sakhalin projects, in Sakhalin-1 and Sakhalin-2, so it will remain, this is due not only to interest in direct supply of energy resources to Japan of these projects, but also with the fact that the Japanese are afraid that their shares will be replaced by Chinese companies. They extremely do not want to see the Chinese on Sakhalin, but one must understand that the Japanese have a special attitude towards Sakhalin, towards its economic development, since they consider this island a historically dependent territory, and the last thing they can end up in Russia from is precisely from Sakhalin projects. Therefore, I think that in the coming years there is no risk of a Japanese company leaving. Indian companies also do not intend to leave.”

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