Exxon halts operation of Sakhalin -1 due to refusal to work with Sovcomflot tankers

Exxon halts operation of Sakhalin -1 due to refusal to work with Sovcomflot tankers Exxon stopped production at the Sakhalin-1 project due to its refusal to work with Sovcomflot tankers, Report informs, citing Kommersant.
Energy
October 17, 2022 10:01
Exxon halts operation of Sakhalin -1 due to refusal to work with Sovcomflot tankers

Exxon stopped production at the Sakhalin-1 project due to its refusal to work with Sovcomflot tankers, Report informs, citing Kommersant.

At the end of March, Sovcomflot came under sanctions, as a result of which its vessels lost insurance from the International Group of P&I Clubs.

In June, the head of Sovcomflot, Igor Tonkovidov, announced that the problem would be solved by attracting Russian insurers. Then the shipping company received insurance for its tankers from the domestic Ingosstrakh, but Exxon, which decided to leave Russia in March over the situation in Ukraine, insisted on mandatory P&I insurance (insurance of broad, uncertain risks that some insurers usually do not cover) and refused to resume shipments.

Already in May, production at the project stopped due to the overflow of oil tanks in the port of De-Kastri, from where it is shipped to the world market.

Sakhalin-1 is being developed by a consortium of American ExxonMobil, Indian ONGC, Japanese Sodeco and Rosneft under a production sharing agreement.

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