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The firm made the announcement in its filing with the US Securities and Exchange Commission (SEC ).
The Sakhalin-1 development reported a production rate of 220,000 barrels per day (bpd) in 2021.
Output form the project declined to 10,000bpd following the sanctions imposed by Western nations on Russia following the invasion of Ukraine, reported Reuters.
Earlier this year, Exxon said it took an impairment charge of $4.6bn for exiting the Sakhalin-1 development, its largest Russian investment.
Last month, a senior Russian lawmaker said the Sakhalin-1 oil and gas project’s control would be transferred to Russia.
The project partners included ExxonMobil subsidiary Exxon Neftegas (30%), Rosneft affiliates RN-Astra (8.5%), the Japanese SODECO Consortium (30%), Sakhalinmorneftegaz-Shelf (11.5%), and India’s Oil and Natural Gas Corporation (ONGC) overseas arm ONGC Videsh (20%).
ExxonMobil spokesperson Casey Norton was quoted by the news agency as saying that the company has made ‘significant progress’ in exiting the Sakhalin-1 venture.
“As operator of Sakhalin-1, we have an obligation to ensure the safety of people, protection of the environment, and integrity of operations. It’s a complex process.”
In a separate announcement, Russia’s Gazprom will receive a 50% stake in the new entity, which will replace the Sakhalin Energy liquefied natural gas (LNG) project, reported Interfax, citing a government decree.
The new operator of the Sakhalin-2 project, under the production sharing agreement, is planned to be registered in Yuzhno-Sakhalinsk.
The remaining stake in the new entity will be owned by the company itself until after the other existing shareholders of Sakhalin-2 apply for a stake within a month, reported Reuters.