ExxonMobil is scaling back its operations on its flagship offshore development project in Russia’s Sakhalin Island region in response to the fallout from the crisis in Ukraine, Upstream reported on Tuesday, citing information on the Sakhalin Online news website.
A consortium source cited by the Russian website claimed that foreign managers have been told to leave the project for an initial period of one month.
The operator has also reportedly instructed employees to prepare two extended reach development wells for shutdown in the coming two weeks. The wells are currently being drilled into producing reservoirs.
These moves are seen as a consequence of the geopolitical shock waves caused by Russian military operations in Ukraine.
US contractor Parker Drilling has been in charge of almost all drilling operations on the project, with a significant presence of foreign staff reported on the project.
ExxonMobil has relied on other US and international contractors in operating the development.
(Excerpt from Upstream report)
