ExxonMobil has quietly signed a non-binding agreement with Russia’s state-run Rosneft that could open the door to recovering billions lost when it exited the Sakhalin-1 project after Moscow’s invasion of Ukraine. Sources told that Reuters the pact, inked in late August or early September, sets the terms for talks but stops short of a binding deal.
The move is Exxon’s first tangible step toward clawing back the $4.6 billion write-down it booked in 2022, when it walked away from Russia and lost access to some 150 million barrels of reserves. At the time, Exxon declared force majeure on Sakhalin-1, where it had held a 30% operator stake, and pledged no new investments in Russia. Within months, Moscow expropriated Western stakes and transferred them to a new Russian entity. Output at Sakhalin-1 collapsed, only to be gradually restored to pre-war levels of around 220,000 barrels per day under Russian management.
Today’s agreement suggests Exxon and Rosneft are exploring a path back, even as Western sanctions still target the Russian oil giant and its chief, Igor Sechin. Exxon CEO Darren Woods acknowledged ongoing discussions last week, confirming they center on recouping losses but offering no details. Rosneft has denied signing a cooperation deal but did not address the reported preliminary pact.
The timing underscores the geopolitical undercurrents. U.S. and Russian officials have quietly discussed economic cooperation tied to a possible Ukraine peace framework, with Sakhalin-1 floated as an example. President Trump met Vladimir Putin in Alaska in August, though those talks produced no breakthrough. Russian officials, however, have since said they are open to Exxon’s return.
Whether the talks yield anything concrete will hinge on sanctions and politics. For now, Exxon has signed only a framework for discussions. The company is still shut out of Russian production, but the agreement signals it has not given up on recovering its stranded billions from Sakhalin-1.
By Julianne Geiger for Oilprice.com
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