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Page added on March 1, 2018

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Exxon Quits Some Russian Joint Ventures Citing Sanctions

Public Policy

Exxon Mobil Corp will exit some joint ventures with Russia’s Rosneft, citing Western sanctions first imposed in 2014, while the Russian company said the pullout will result in serious losses for its U.S. partner.

The move is an about-face for Exxon, which had opposed the sanctions over Russia’s invasion of Crimea and argued they unfairly penalized U.S. companies while allowing foreign energy rivals to operate in the country, the world’s largest oil producer.

Yet the sanctions were effective in slowing work on a project by Exxon and Rosneft on what was hailed as a major discovery in the Kara Sea above the Arctic Circle.

Rosneft, Russia’s largest oil company, said last year that it planned to return to operations at the project in 2019.

Exxon’s exit from projects will not affect the Sakhalin project off the eastern coast of Russia, Exxon and Rosneft spokesmen said.

Sakhalin-1 operates under a Production Sharing Agreement struck in the mid-1990s and currently produces around 200,000 barrels of oil per day.

Representatives for the U.S. Department of State and Treasury Department did not have immediate comment. The joint ventures were reached when U.S. Secretary of State Rex Tillerson was Exxon’s chief executive.

A Rosneft’s spokesman said ExxonMobil would incur serious losses because of the decision.

Rosneft spokesman Mikhail Leontyev said Exxon had been forced to take what he called a predictable decision, but confirmed the move would not affect the Sakhalin-1 joint venture.

“It (Exxon) will suffer serious losses as a result of this (decision),” said Leontyev.

Exxon said it will formally start the process of withdrawing from the joint ventures this year.

In 2012, Exxon and Rosneft detailed an exploration partnership with plans to invest as much as $500 billion in developing Russia’s Arctic and Black Sea oil reserves. Further deals were signed in 2014.

Exxon said in a financial filing on Wednesday that it recorded a fourth quarter after-tax loss of $200 million due to the withdrawal plan.

The United States and the European Union imposed economic sanctions on Russia over its annexation of Crimea in 2014 and its role in eastern Ukraine conflicts.

The U.S. government also imposed sanctions on Rosneft Chief Executive Igor Sechin that year.

The sanctions prohibit U.S. citizens or people in the United States from dealing with those on the blacklist, such as Sechin. Rosneft itself is subject to narrower U.S. sanctions that still allow Americans to deal with the company on some transactions.

The U.S. government fined Exxon $2 million for signing the joint ventures just after sanctions were imposed in 2014, saying the company showed a “reckless disregard” for the sanctions. Exxon called the fine “capricious” and appealed it.

Still, Exxon wound down drilling in Russia’s Arctic in 2014 after the sanctions were imposed. Exxon was allowed to finish some drilling projects as the sanctions took effect.

RIGZONE



34 Comments on "Exxon Quits Some Russian Joint Ventures Citing Sanctions"

  1. bobinget on Thu, 1st Mar 2018 1:56 pm 

    Looks like XOM gave up on Trump killing off Russian sanctions.
    After today’s Putin speeches, videos, who can blame them?

    https://www.thesun.co.uk/news/5700668/vladimir-putin-russia-nuclear-weapons-icbm-missile/

    As for “Dead President Walking” he stated flatly
    he intends to put major tariffs on Imported metals.
    https://www.nytimes.com/2018/03/01/business/trump-tariffs.html this news knocked 300 points off DOW

    (Throws tens of thousands steel workers who depend on imported steel, out of work)
    Oh, Trump himself never used US steel to build.
    (even when contracts called for US made)

    If you recall, it was tariffs that started ‘The Great Depression’

    DJT seems to be daring free trade Republicans to indite. Like every mad-man Trump believes he alone can get his Lumpin to keep him in office out of fear. When pink slips go out, Trump is fired.

  2. Kenz300 on Thu, 1st Mar 2018 2:00 pm 

    Exxon needs to pull back from risky new production projects.

    Stranded assets may become a problem in the future.

    Coal bankruptcies are a good example of what can happen.

  3. Boat on Thu, 1st Mar 2018 2:25 pm 

    Hypersonic weapons make traditional war machines obsolete. Of course that’s why we spend 600 billion on crap like aircraft carriers and tanks. Works good on Sharai law though.

  4. Boat on Thu, 1st Mar 2018 2:28 pm 

    Putin did lose a chunk of it’s oil brain trust. Time to drop trade with Russia altogether.

  5. bobinget on Thu, 1st Mar 2018 3:00 pm 

    http://www.bbc.com/news/world-us-canada-43248794

    From DJT, not a single Tweet. What is Donald afraid of? If N.K. were able to make such veiled threats Trump would have already reacted.

    Old time GOP, Dems, must be bleeding from the eyes by now. I’m one of them.

  6. bobinget on Thu, 1st Mar 2018 3:11 pm 

    Boat, Apart from petroleum and weapons Rus doesn’t export many of those little dolls that fit inside each other. Russia’s entire economy, like
    Venezuela or Saudi Arabia, totally oil dependent.
    (which is one reason Russia and KSA have aligned)

    If Russian doll imports are cut off our thrift stores
    won’t go out of business.

  7. Anonymouse1 on Thu, 1st Mar 2018 3:24 pm 

    Look everyone, three retards for the price of one. All we need now, is for the exceptionalist to show up and remind us all(again) how China is deep in overshoot (and is screwed). And a bonus retard if Clogghraham post’s one of this stupid and usually irrelevant web links( they can be completely OT, about windmills, WWII, or anything with a picture of a solar panel.)

  8. Boat on Thu, 1st Mar 2018 4:55 pm 

    As usual amouse shows with nothing. Typical troll.

  9. GregT on Thu, 1st Mar 2018 5:26 pm 

    “What is Donald afraid of? If N.K. were able to make such veiled threats Trump would have already reacted.”

    So when another nation says they will fight back if the US carries out a first strike nuke war against them, that is considered to be a veiled threat? Are they just supposed to lay down and die?

    What the hell is wrong with you people anyways?

  10. Davy on Thu, 1st Mar 2018 5:47 pm 

    Not that simple, simpleton.

  11. GregT on Thu, 1st Mar 2018 5:59 pm 

    “Putin vowed to wage nuclear war on the United States if Trump attacked first”

    “We aren’t threatening anyone… we aren’t going to take anything from anyone,” he said”

    Doesn’t get much simpler Davy. Even somebody as severely messed up as yourself, should be able to figure it out. Apparently not.

  12. Davy on Thu, 1st Mar 2018 6:04 pm 

    Typical of you greggie and your one liners. Weren’t we Talking about NK, extremist anti-American? You slimy Canadians are always shifting topics.

  13. MASTERMIND on Thu, 1st Mar 2018 6:46 pm 

    Existing oil reserves are scheduled to begin a catastrophic crash within 1 to 3 years. When it hits the economic and social damage will be catastrophic. The end of Western Civilization, from China to Europe, to the US, will not occur when oil runs out. The economic and social chaos will occur when supplies are merely reduced sufficiently….

    https://imgur.com/a/6dEDt
    http://www.nature.com/nature/journal/v481/n7382/full/481433a.html
    http://www.sciencedirect.com/science/article/pii/S0301421509001281
    http://www.sciencedirect.com/science/article/pii/S030142151300342X
    http://www.sciencedirect.com/science/article/pii/S0016236114010254
    http://www.geo.cornell.edu/eas/energy/the_challenges/peak_oil.html
    http://www.energybulletin.net/sites/default/files/Peak%20Oil_Study%20EN.pdf
    http://www.scribd.com/document/367688629/HSBC-Peak-Oil-Report-2017

  14. MASTERMIND on Thu, 1st Mar 2018 6:48 pm 

    Dear Reader,
    Here are five peer reviewed scientific studies authored by top experts that prove beyond any reasonable doubt that global civilization will collapse within the next decade.

    http://www.sciencedirect.com/science/article/pii/S0921800914000615

    https://www.nature.com/articles/463608a

    https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3574335/

    http://sustainable.unimelb.edu.au/sites/default/files/docs/MSSI-ResearchPaper-4_Turner_2014.pdf

    http://www.feasta.org/wp-content/uploads/2012/06/Trade-Off1.pdf

    Simple really….when the World Economy Collapses everything shuts down…the end… We’re talking about grids down all over the world and 7.5B people dropping like f*** flies in short order. The collapse will be absolutely horrible..There is no collapse or horror movie ever produced that has even come close to imagining what the collapse of BAU might look like. I’m talking about every corporation and every social program going bankrupt at once. I’m talking about people eating people. I’m talking about the Worst Catastrophe to ever happen in the history of mankind. Nothing has ever, or will ever come close….

  15. GregT on Thu, 1st Mar 2018 7:01 pm 

    “Typical of you greggie and your one liners. Weren’t we Talking about NK, extremist anti-American? You slimy Canadians are always shifting topics.”

    No Davy, we were talking about this:

    “Exxon Quits Some Russian Joint Ventures Citing Sanctions”

    This:

    “Looks like XOM gave up on Trump killing off Russian sanctions.
    After today’s Putin speeches, videos, who can blame them?”

    This:

    “Putin did lose a chunk of it’s oil brain trust. Time to drop trade with Russia altogether.”

    This:

    http://www.bbc.com/news/world-us-canada-43248794

    And this:

    “If Russian doll imports are cut off our thrift stores
    won’t go out of business.”

    But whatever you do, don’t let that grey matter get in the way of your emotions.

  16. Davy on Thu, 1st Mar 2018 7:11 pm 

    “What is Donald afraid of? If N.K. were able to make such veiled threats Trump would have already reacted.”

    Slimy, go back through the thread and review the above and get back to me.

  17. GregT on Thu, 1st Mar 2018 7:15 pm 

    “What is Donald afraid of? If N.K. were able to make such veiled threats Trump would have already reacted.”

    That comment is referring to this article from the BBC:

    Why would Putin want to nuke Florida?

    http://www.bbc.com/news/world-us-canada-43248794

    Not the least bit surprising that you’re too much of a dumbass to figure that out.

  18. JuanP on Thu, 1st Mar 2018 8:02 pm 

    This is great news for Russia! The more independent that Russia becomes from the USA and its collapsing financial system the stronger it will be. Russia has all the food, water, energy, and weapons it needs to make it on its own and defend itself as the USA goes down the drain. Long live Russia! Long live President Putin!

  19. JuanP on Thu, 1st Mar 2018 8:09 pm 

    The new Russian nuclear arsenal makes all US missile defense systems obsolete. Russia has the capability to completely destroy the USA in less than an hour. https://www.rt.com/news/420206-russia-strategic-weapons-putin/

  20. GregT on Thu, 1st Mar 2018 8:28 pm 

    Mattis unveils new strategy focused on Russia and China, takes Congress to task for budget impasse
    January 19, 2018

    “The United States must build up its military to prepare for the possibility of conflict with Russia and China, according to a new Pentagon strategy released Friday by Defense Secretary Jim Mattis as he took Congress to task on the eve of a potential government shutdown for years of failing to reach budget deals.”

    https://www.washingtonpost.com/news/checkpoint/wp/2018/01/19/mattis-calls-for-urgent-change-to-counter-russia-and-china-in-new-pentagon-strategy/?utm_term=.277b61ec96a4

    You just can’t make this shit up. Insanity rules in DC.

  21. Davy on Thu, 1st Mar 2018 8:45 pm 

    Slimy, there is a reason why you are called slimy. When you get your ass kicked you try stutter and waffle out of your screw up you made.

  22. GregT on Thu, 1st Mar 2018 8:51 pm 

    You really are quite the piece of work Davy. Beyond help.

  23. Davy on Thu, 1st Mar 2018 8:58 pm 

    Say something slimy or shut up. You are just an annoying stupid Canadian that has nothing to say. IOW NOISE.

  24. MASTERMIND on Thu, 1st Mar 2018 9:14 pm 

    If we kill Putin and take the Russian oil than that might cover the gap from fracking. And we would have our oil while the rest of the world crashes and burns! AMERICA FIRST!

  25. MASTERMIND on Thu, 1st Mar 2018 9:17 pm 

    Remember when are president had balls?

    https://imgur.com/a/9u2WD

  26. GregT on Thu, 1st Mar 2018 9:35 pm 

    “Say something slimy or shut up. You are just an annoying stupid Canadian that has nothing to say. IOW NOISE.”

    You have both serious emotional and psychological issues Davy. You should have spoken with a mental healthcare professional years ago, when you first started to lose your marbles. It is now too late. You aren’t doing yourself any favours by continuing to troll these forums. Your condition will only continue to deteriorate even further. Just like I called it over four years ago.

  27. Cloggie on Thu, 1st Mar 2018 9:38 pm 

    “If we kill Putin and take the Russian oil than that might cover the gap from fracking. And we would have our oil while the rest of the world crashes and burns! AMERICA FIRST!”

    Russia and the rest of Eurasia has no illusions about the intentions of the ZOG-system, that not only wants to conquer the entire world, but also wants to finish off North-American whitey. One wonders who will be left to do the conquering? lol

    Millimind and his water carrier Davy are the purest representations of the (dangerous) lunacy currently rampant in Washington. The experiences in Iraq, Syria and Afghanistan, have shown that the US is militarily a paper tiger, unfit to realize its goal of global domination.

  28. Cloggie on Thu, 1st Mar 2018 9:47 pm 

    Afghanistan comes full circle, wants Taliban in government and sees positive role for Russia to achieve peace:

    https://www.bloomberg.com/news/articles/2018-02-28/ex-afghan-leader-karzai-sees-russia-as-key-to-peace-with-taliban

    The US propped up the Taliban to push the USSR out of Afghanistan and succeeded, but also unintentionally unleashed militant islamic fundamentalism that increasingly turned against US interests in the ME and could easily succeed in pushing out the US from the ME.

    Who would have thought.

  29. bobinget on Fri, 2nd Mar 2018 5:19 am 

    “Trade wars are easy to win”
    Tweet by Donald J Trump

  30. bobinget on Fri, 2nd Mar 2018 5:26 am 

    correction:
    “Trade wars are good and easy to win”.

  31. JuanP on Fri, 2nd Mar 2018 6:37 am 

    Micromind “If we kill Putin and take the Russian oil than that might cover the gap from fracking.”
    Maybe the USA should focus on trying to bring the troops back home and fixing our own domestic problems. What makes you think that the USA could control Russia when they are failing miserably to control Afghanistan, Iraq, Lybia, Syria, Ukraine and all the other countries they have attacked in the last decades? It is because of insane, arrogant, illiterate retards like you that the USA is humanity’s laughing stock, Imaginary Neuron! You can’t even fix your own nation, the USA! You think that you can destroy and control the BIGGEST country in the world? Unfortunately, you are the definition of a clinically insane person and you are completely representative of your nation, the USA. The USA is going down the drain and this is extremely good for humanity!

  32. rockman on Fri, 2nd Mar 2018 3:09 pm 

    Juan – “The new Russian nuclear arsenal makes all US missile defense systems obsolete. Russia has the capability to completely destroy the USA in less than an hour.” Maybe true…maybe not. But does it matter. The MAD (Mutually Assurred Destruction)dynamic still in place. Even if the Russians completely destroyed all our land based assets in one quick move our submarine force could destroy Russia ten times over. And in the process the combined fallout would likely kill billions in the other countries.

    The good news if that were to come about: it would put off worrying about PO for 100 years…maybe even 200 years. LOL.

  33. Sissyfuss on Fri, 2nd Mar 2018 7:01 pm 

    We are facing the uncontrollable predicaments of resource depletion, population increase, and climate disruption and the power players of the world are rattling sabers and making threats that if carried out would end in extinction. An indigenous seer wrote that the true nature of man is that he is struggling to die, not live. I find his wisdom incontrovertible.

  34. MASTERMIND on Fri, 2nd Mar 2018 7:23 pm 

    Economics is pseudoscience used to justify preexisting social hierarchies. If the earliest economists had told the truth (mutual aid is key to the flourishing of any civilization and allowing individuals to amass endless wealth is detrimental), the rulers who paid them would have just killed them and paid someone else to say differently.

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