ExxonMobil Plans to Resume Oil Production in Russia

• ExxonMobil is discussing the return to the Sakhalin-1 project.
• Negotiations are taking place against the backdrop of peace initiatives regarding Ukraine.
• Russia is proposing new conditions for foreign investors.

This is reported by RBC Ukraine, The Yomiuri Shimbun.

The American corporation ExxonMobil is holding negotiations with the Russian company Rosneft regarding the resumption of oil production at the Sakhalin-1 oil field. According to information from The Wall Street Journal, these negotiations have intensified since January 2025, after the inauguration of Donald Trump.

Discussions about Exxon’s return to Russia are occurring against the backdrop of peace negotiations regarding Ukraine, which are being conducted between the USA and Russia. Official representatives discussed the possibility of ExxonMobil's return to the Sakhalin-1 project as part of the conditions for easing sanctions.

Following Exxon’s exit from Russia in 2022, the company reported losses exceeding $4 billion. It is suggested that the conditions for Exxon’s return to Russia may include the supply of equipment from abroad and the lifting of sanctions.

Market Situation

In the case of Exxon’s return, it will be subject to new conditions for conducting business in Russia, especially as the economy of the region has suffered from the impact of sanctions, high interest rates, and inflation. The market for Russian oil has also undergone changes, as European countries have refused to import it, while countries like India and China continue to purchase Russian oil.

Sakhalin-1 Project

The Sakhalin-1 project is a consortium for oil and gas production on Sakhalin Island. Exxon previously held a 30% stake in the project, and its share was nationalized after the company exited in 2022. Exxon’s return may depend on the conditions imposed by Russia, including the possibility of resuming its stake in the project.

During the negotiations, energy agreements were also discussed, including the possibility of purchasing American equipment for LNG projects from Russia, such as Arctic LNG-2, which also falls under Western sanctions.

Tags: Russia/Energy