Exxon Ceased Work at Two Sakhalin Fields

Exxon Neftegas Ltd. and its partners “have no choice but to implement a controlled and orderly suspension of work on the Odoptu and Arkutun Dagi projects,” Dilyara Sydykova, an Exxon spokeswoman in Houston, told Bloomberg.

The Sakhalin-1 partners, which include state-owned OAO Rosneft, have complied with all information requests from the Russian authorities as they seek approval, Sydykova said. The projects are in early stages and no production facilities have been installed, she said, adding that the halt shouldn’t affect oil and gas output at Sakhalin-1’s Chayvo field.

Rosneft, Russia’s largest oil producer, and India’s ONGC Videsh Ltd. each own 20 percent stake in the project. Japan’s Sakhalin Oil and Gas Development Co., or Sodeco, owns 30 percent, as does Exxon.

Author: Ksenia Kochneva