In 2014, the European Union and United States imposed sanctions related to Russian energy sector since Russian annexed Crimea from Ukraine in March and for supporting separatists in eastern Ukraine.
One of the most promising joint ventures between ExxonMobil and Rosneft is the Kara Sea drilling that started last August. The joint drilling was forced to shut down in October because of the sanctions.
In its annual report to the New York Stock Exchange, ExxonMobil admits the huge loss.
“In compliance with the sanctions and all general and specific licenses, prohibited activities involving offshore Russia in the Black Sea, Arctic regions, and onshore western Siberia have been wound down. The Corporation’s maximum exposure to loss from these joint ventures as of December 31, 2014, is $1.0 billion,” the report reads on page 72.
In addition to the huge areas with joint venture rights in the Kara Sea, Rosneft and ExxonMobil also have exploration areas in the Laptev and Chukchi seas in the Arctic.
In late February, Rosneft posted a request to the Russian Mineral Agency (Rosnedra) on postponing its exploration activities in 12 Arctic offshore licenses. Rosneft argues that it is not possible to fulfil the drillings as planned because of the pull-out of foreign partners and the consequent problems with getting the necessary project investments.
