Putin orders Russia to seize Exxon-led Sakhalin 1 oil and gas project - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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Russian President Vladimir Putin has signed a decree, published on Friday, to set up a new operator for the Sakhalin 1 oil and gas project, following similar steps to seize other oil and gas projects with foreign participation.

Exxon Mobil Corp, with a 30% stake, was the operator of Sakhalin-1, a development in Russia’s Far East.

In April, Exxon took a $4.6 billion impairment charge for exiting its Russian activities, leaving Sakhalin-1 operation open for a takeover from a partner.In August, Putin issued the Presidential Decree 520 which Exxon said impedes the company to conclude the exit safely. Exxon’s head of upstream operations said on Tuesday it was still working with its partners on its exit.The Russian company Rosneft is a partner in the project along with ONGC Videsh, the overseas investment arm of India’s ONGC, and Japan’s SODECO.

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