MOSCOW, August 30. /TASS/. Controversial issues on Sakhalin-1 can be resolved after the project returns to normal production activity, says Rosneft, one of the shareholders of the project.
Earlier on Tuesday, the Wall Street Journal reported citing sources that ExxonMobil, one of the largest US oil companies, could go to court if the Russian government does not allow it to withdraw from the Sakhalin-1 oil and gas project.
"Financial disagreements between the participants of the Sakhalin-1 project are the result of a unilateral decision by its operator to halt field operation, which currently generates only losses for the participants in the PSA. The return to normal production of the Sakhalin-1 project could create the necessary conditions for resolving all disputable issues," a Rosneft spokesman told reporters.
"At the same time, the company hopes for that the issues which arose in the legal field will be resolved in the interests of all project participants," he added.
ExxonMobil spokesman Casey Norton told the WSJ on Tuesday that the company had sent a notice of disagreement to the Russian government. The document sets a deadline for reaching an agreement by the parties, otherwise the case will go to court.
According to sources, ExxonMobil is preparing to file a lawsuit as it fears that the issue is unlikely to be resolved before the deadline indicated in the notice. According to the publication, it can take from 30 to 60 days before the filing of a lawsuit. The lawsuit is expected to be filed outside of Russia, and resolution in an international arbitration court could take years.
Rosneft noted that the company does not comment on issues that are the authority of the Russian government.
Situation around the project
In March, ExxonMobil announced that it was pulling out of the Sakhalin-1 oil and gas project and withdrawing its US employees from oil and gas projects in Russia.
In August, the company said it was in the process of transferring its operating interest in the Sakhalin-1 project to another party, without naming it.
Rosneft then reported that on April 26, Exxon, without agreement with other project participants, began to gradually halt the production, and from mid-May, production at the project was practically stopped.
On August 5, Russian President Vladimir Putin signed a decree on the application of special economic measures in the financial and fuel and energy sectors due to unfriendly actions of some states and international organizations. It prohibits making a number of transactions until December 31, 2022 related to the participation of foreigners from unfriendly states in Russian companies. The restriction applies to shares, rights and obligations in the Sakhalin-1 oil and gas project.
The operator of Sakhalin-1, Exxon Neftegaz, a subsidiary of ExxonMobil, owns a 30% stake in the project. Other participants are: Rosneft (20%), Japanese Sodeco (30%), Indian ONGC Videsh (20%).