ExxonMobil settles Sakhalin-1 dispute with Russia

The authorities of Russia have signed an agreement with ExxonMobil to settle their dispute over the Sakhalin-1 Project in the Far East of Russia.

In their statement on Thursday, the Ministry of Finance of Russia mentioned signing on September 12 a settlement agreement between ExxonMobil and Russia in a legal process over a claim for funds recovery under a product sharing agreement at the Sakhalin-1 project.

ExxonMobil settles Sakhalin-1 dispute with Russia

In 2015 ExxonMobil applied with the Stockholm arbitration court for arbitration and claimed USD500 mln has been overpaid in income taxes on its Sakhalin-1 oil & gas project in Russia and requested a refund and tax reduction.

The parties reached a mutually satisfactory agreement. On behalf of Russia, the Finance Minister Anton Siluanov has signed this settlement agreement, the ministry reported on Thursday. An Exxon representative has confirmed to TASS, the Russian news agency, that the agreement had been reached and added that the details of the settlement agreement were off the record.

Exxon-operated Project Sakhalin-1 includes 3 oil fields currently in production: Chayvo, Arkutun-Dagi, and Odoptu. The 2016 annual report of ExxonMobil shows that daily net production rate from the Sakhalin-1 project was an average of 49,000 BOPD and 53 MMCF of natural gas. Over 653 mln barrels of oil have been produced and exported to global markets since the commissioning of the Sakhalin-1 Project in 2005. Moreover, about 692 BCF of natural gas has been supplied to Russian consumers.

Source: http://www.offshoreenergytoday.com/russia-exxon-settle-sakhalin-1-dispute/

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