Exxon Mobil in $4.6B Talks With Rosneft as Russia Exit Costs Loom

Sep 23 Exxon Mobil Corp. XOM has begun preliminary, nonbinding discussions with Russia's Rosneft on ways to address roughly $4.6 billion in losses tied to its withdrawal from Russian projects in 2022.

The framework agreement, signed in late August or early September, marks the first step toward exploring possible recovery of funds. Sources caution that any progress will hinge on developments in Ukraine and the future of U.S. and European sanctions, according to Reuters.

Exxon's 2022 departure led to a write-down centered on its 30% stake in the Sakhalin-1 project off Russia's Pacific coast, cutting off access to about 150 million barrels of proven reserves. CEO Darren Woods confirmed last week that talks are active but declined to provide details on potential compensation.

Even as Exxon seeks to resolve past losses, it continues to expand in Guyana. The company has reached a final investment decision on the Hammerhead project, a $6.8 billion offshore development scheduled for first oil in 2029. Hammerhead, the seventh approved project on the Stabroek block, is designed to produce about 150,000 barrels per day, lifting block capacity toward 1.5 million barrels daily.

Exxon says total commitments across Guyana now top $60 billion, supporting jobs, local suppliers, and broader investment.