Exxon Mulls Suing Russia Government Over Barred Exit From Energy Project: Report
Exxon Mobil Corp (NYSE: XOM) will sue the federal government unless Moscow allows it to exit a significant oil-and-gas project, Wall Street Journal reported citing people familiar with the matter.
A decree banning certain transactions through the end of 2022 has blocked Exxon from transferring operatorship and selling its 30% stake in the Sakhalin-1 venture.
Exxon had said in regulatory filings that it was transitioning operating activities to another party following Russia’s invasion of Ukraine before the decree.
“Exiting is a complex process, and as the operator, we must protect the safety of employees, the environment, and the operation,” said Exxon spokesman Casey Norton.
In the Q1 earnings release, Exxon Mobil reported a $3.4 billion after-tax charge related to its Sakhalin-1 operation in Russia.
Exxon is taking steps to file a lawsuit with the expectation that the matter is unlikely to be resolved by the deadline, the people familiar with the matter said. The exact date the notice was filed couldn’t be determined.
Price Action: XOM shares are down 0.77% at $99.35 during the premarket session on the last check Friday.
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