Exxon declares power majeure on Russian Sakhalin-1 operations

0
26


Exxon Mobil Corp stated on Wednesday its Russian unit Exxon Neftegas Ltd has declared power majeure for its Sakhalin-1 operations because of sanctions on Russia which have made it more and more troublesome to ship crude to prospects.

The Sakhalin-1 venture produces Sokol crude oil off the coast of Sakhalin Island within the Russian Far East, exporting about 273,000 barrels per day, primarily to South Korea, and to different locations together with Japan, Australia, Thailand and the US.

Exxon stated on March 1 it might exit about $four billion in property and discontinue all its Russia operations, together with Sakhalin 1, following Moscow’s invasion of Ukraine on Feb. 24.

The oil producer is taking steps to exit Sakhalin 1, which incorporates addressing contractual and industrial obligations, Exxon spokesperson Julie King stated in a written response.

“As operator of Sakhalin-1, we’ve an obligation to make sure the protection of individuals, safety of the surroundings and integrity of operations,” King stated.

Exxon has additionally considerably phased down its chemical and lubricant companies in Russia, and suspended gross sales of all chemical and lubricant merchandise into Russia and Belarus.

Undertaking stakeholders, which additionally embrace Japan’s Sakhalin Oil and Gas Development consortium and Indian explorer ONGC Videsh, are having issue chartering tankers to ship oil out of a area that typically wants ice vessels to navigate the journey.

That’s due to rising issues from shippers over popularity threat and the rising issue for Russian property to search out insurance coverage protection.

“Because of this, Exxon Neftegas Ltd has curtailed crude oil manufacturing,” King stated.

The newest tanker to tackle crude at Russia’s De Kastri port – the place oil from Sakhalin-1 is loaded – was Aframax tanker Captain Kostichev, in accordance with knowledge on Refinitiv Eikon. The vessel is at the moment positioned off De Kastri port.

Two different Aframax tankers, Victor Konetsky and Yuri Senkevich, usually used to ship Sokol crude to Yeosu, are empty and floating close to the port as nicely.

Japan’s Sakhalin consortium, which owns a 30% stake within the venture, declined remark, citing confidentiality agreements with Exxon.



Source link

HostGator Web Hosting

LEAVE A REPLY

Please enter your comment!
Please enter your name here