April 27 Reuters Exxon Mobil Corp said on Wednesday its Russian unit Exxon Neftegas Ltd has declared force majeure for its Sakhalin1 operations due to sanctions on Russia that have made it increasingly difficult to ship crude to customers.
The Sakhalin1 project produces Sokol crude oil off the coast of Sakhalin Island in the Russian Far East, exporting about 273,000 barrels per day, mainly to South Korea, and to other destinations including Japan, Australia, Thailand and the United States.
Exxon said on March 1 it would exit about 4 billion in assets and discontinue all its Russia operations, including Sakhalin 1, following Moscow39;s invasion of Ukraine on Feb. 24.
The oil producer is taking steps to exit Sakhalin 1, which includes addressing contractual and commercial obligations, Exxon spokesperson Julie King said in a written response.
As operator of Sakhalin1, we have an obligation to ensure the safety of people, protection of the environment and integrity of operations, King said.
Exxon has also significantly phased down its chemical and lubricant businesses in Russia, and suspended sales of all chemical and lubricant products into Russia and Belarus.
Project stakeholders, which also include Japan39;s Sakhalin Oil and Gas Development consortium and Indian explorer ONGC Videsh, are having difficulty chartering tankers to ship oil out of a region that generally needs ice vessels to navigate the journey.
That is because of growing concerns from shippers over…