Deadline Extended to 2026 for Exxon to Sell Its Stake in Sakhalin-1

Russian President Vladimir Putin has given Exxon Mobil Corp a deadline until January 1, 2026, to divest its 30% stake in the Sakhalin-1 oil and gas project. The previous extension set the deadline for January 1, 2025.

The Sakhalin-1 project, located in Russia's Far East, has undergone changes since President Putin signed a decree in October 2022 transferring operational control to a Russian company. Following this decree, foreign shareholders were given a one-month period to decide whether to retain their ownership in the newly established company.

Japan's Sodeco and India's ONGC Videsh Ltd chose to retain their stakes of 30% and 20%, respectively. Russian oil giant Rosneft holds the remaining 20% stake. Prior to this development, Exxon, which held a 30% stake, was in talks to transfer its share to an unnamed third party. However, those plans were halted by a previous decree from Putin in August 2022, which prohibited foreign investors from withdrawing from certain strategic projects in the country.