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The Sakhalin Governor of Russia says that Exxon's return to Russia would be beneficial

The Governor of Russia's Sakhalin region in the far east told reporters on Thursday that a possible return of U.S. Energy Major Exxon Mobil could be a boon for local oil and gas businesses.

Last month, Russian President Vladimir Putin issued a decree that would allow foreign investors to recover their shares in the Sakhalin-1 project. This includes Exxon Mobil, a major U.S. oil company.

The decree was signed on the same day that Donald Trump and Russian President Vladimir Putin met in Alaska at a summit, where the agenda included opportunities for business collaboration and investment as well as talks about finding peace in Ukraine.

The decree, published in November 2022 as a sequel to the one Putin had signed on October 20, which ordered the seizure the Sakhalin-1 Project.

Exxon held a 30% operator stake in this lucrative project and is the sole non-Russian investor who has sold its stake.

Valery Limarenko said that Russia has its own technologies for producing oil and gas including offshore but the return of Exxon would be helpful.

He said, "We must develop further. In this sense, a joint development would be more effective."

He added, "It's important they want to come back."

Exxon has taken a $4.6 billion impairment charge to exit its Russian operations after Moscow sent troops into Ukraine, in February 2022.

Putin extended the period of sale for the Exxon share in Sakhalin-1 that was not claimed until 2026.

Exxon was joined by Rosneft of Russia, ONGC Videsh from India, and SODECO, a Japanese company, as well as other investors.

Both ONGC Videsh (India) and SODECO (Russia) were allowed to retain their stakes by the Russian government.

(source: Reuters)