The Russian unit of oil major Exxon Mobil, Exxon Neftegas has declared force majeure for its Sakhalin-1 operations, where it has become increasingly difficult to ship crude due to sanctions on Russia, Exxon Mobil said on Wednesday April 27th.
The Sakhalin-1 project produces Russian Sokol crude oil off the coast of Sakhalin Island in the Russian Far East and exports about 273,000 bpd. The terminal needs ice-breaker class carriers, and the oil is transferred to normal carriers in Korea, for carriage to elsewhere in the world, including Japan, Australia, Thailand and the USs.
Exxon said that it was discontinuing its operations there – and in all of Russia – following Russia’s invasion of Ukraine.
Stakeholders, including Japan-based Sakhalin Oil and Gas Development consortium (which owns a 30% stake in the project) and India’s Oil and Natural Gas Corp, were reported to be finding it very difficult to charter tankers to ship oil out of the area.
Growing concerns from shippers over reputation risk and the increasing difficulty for Russian assets to find insurance coverage has led Exxon Neftegas to curtail crude oil production, a spokesperson told Reuters.
The latest tanker to load at Russia’s De Kastri port this week was Aframax crude oil tanker Captain Kostichev (IMO 9301392), according to data on Refinitiv Eikon. The vessel is currently located off De Kastri port.
2005-built, Cyprus-flagged, 60,434 gt Captain Kostichev is owned by Glimmer Line Shipmanagement care of manager Exxon Neftegas Ltd of Irving, Texas, USA. ISM manager is SCF Management Services Dubai of Dubai, UAE. As of April 28th it was recorded as being entered with Skuld (business unit Skuld Oslo 2) on behalf of Glimmer Line Shipmanagement.