Russian President Vladimir Putin has granted Exxon Mobil Corp (NYSE:XOM) an extension until January 1, 2026, to divest its 30% holding in the Sakhalin-1 oil and gas project.
The previous extension had set the deadline for January 1, 2025.
The Sakhalin-1 project, situated in Russia’s Far East, has been subject to changes since October 2022 when President Putin issued a decree transferring control of the operation to a Russian company.
Following this decree, foreign shareholders were given a one-month window to decide whether to retain their ownership in the newly formed entity.
Japan’s Sodeco and India’s ONGC Videsh Ltd opted to maintain their shares, which are 30% and 20% respectively. Russian oil giant Rosneft holds the remaining 20%.
Prior to this development, Exxon, which also held a 30% stake, was in the process of negotiating the transfer of its share to an unnamed third party. However, these plans were halted by an earlier decree from Putin in August 2022, which prohibited foreign investors from withdrawing from certain strategic projects in the country.
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