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Exxon Mobil expected to exit all Russian operations


Exxon Mobil expected to exit all Russian operations

Exxon Mobil will likely suspend all Russian operations today after previously abandoning its $25.5 billion stake in Russian oil company Rosneft in February – Photo: AFP

Exxon Mobil is likely to suspend all its operations in Russia today.

This includes suspending its participation in oil and natural gas production operations off Sakhalin Island, phasing down its chemical and lubricant businesses in Russia and closing off future investment and cooperation with Russia and Russian energy companies. In February, BP took a $25.5 billion write off after it abandoned its stake in the Russian oil company Rosneft. In April, the U.S. banned the importation of fuel oil, partially refined oils, and motor gasoline from Russia. Despite its exit costing $3.4 billion, Exxon Mobil reported $5.48 billion in profits during the first quarter of 2022 due to high world energy prices.

The company’s physical assets in Russia, such as its onshore and offshore oil rigs, will likely be nationalized or bought by Rosneft. Exxon Mobil’s exit from Russia will likely have little impact on world oil and natural gas prices, as Russian energy exports are already heavily embargoed. Even if these embargos are lifted, expect Exxon Mobil to permanently pivot away from Russia as a revenue source due to the potential for renewed sanctions and increase its investment in other potential oil fields in Liberia and Côte d’Ivoire.

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