Another wave of oil and gas companies have ended their business arrangements in Russia, leaving the country further in the cold following its invasion of Ukraine.
Exxon Mobil Corporation (NYSE:XOM), Centrica PLC (LSE:CNA) and IOG PLC (AIM:IOG) all announced yesterday that they would be exiting the Russian market, sacrificing billions of dollars in assets.
Exxon said it would pull out of managing oil and gas production facilities on Sakhalin Island in Russia’s Far East, affecting assets valued at more than US$4bn, while halting new investment in the country.
“We deplore Russia's military action that violates the territorial integrity of Ukraine and endangers its people,” the company said in a statement.
Exxon did not provide an indicative deadline for its exiting of the Russian market, reflecting a trend of reactionary statements that may take time to take financial effect.
Yesterday, London-listed Centrica announced it would be exiting its gas supply agreements with Russian, counterparts, primarily Gazprom.
“We intend to exit our gas supply agreements with Russian counterparts, principally Gazprom, as a matter of urgency,” Centrica Chief Executive Chris O’Shea said in an emailed statement to Reuters.
"We are working through the details of how best to do this, additionally we will ensure we are compliant with all relevant sanctions."
UK-based IOG also cut ties with Gazprom, last night cancelling the sale of two of its Southern North Sea oil fields to the company.
Gazprom won a bid against more than 10 other competitors in July last year, with the deal due to run until October 2023.
"The company has, via IOGNSL and IOGUKL, served notices on GM&T with immediate effect," IOG said in a statement.
"The Elgood and Southwark equity gas is now expected to be sold to an alternative buyer."
ExxonMobil and IOG saw respective share price increases of 0.96% and 1.16% this morning, while Centrica contracted 0.51% in early deals.