Putin Extends Exxon Mobil's Divestment Timeline

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 deadline was set for January 1, 2025.

The Sakhalin-1 project, located in Russia's Far East, has seen significant 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, holding 30% and 20% respectively, while Rosneft, a Russian oil giant, holds the remaining 20%.

Prior to this, Exxon, with a 30% stake, was negotiating to transfer 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 exiting certain strategic projects in the country.

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