Exxon Mobil Corporation (NYSE:XOM) has reportedly held discreet talks with Russian state oil giant Rosneft ever since 2022.
The oil giant reportedly wants to reenter the Sakhalin energy project, contingent on a potential Ukraine peace deal. Exxon CEO Darren Woods also discussed Exxon's plans with President Donald Trump, according to The Wall Street Journal.
Senior Vice President Neil Chapman led the negotiations for Exxon. Talks took place earlier this year with Rosneft CEO Igor Sechin in Doha, Qatar.
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Exxon exited Russia in 2022, following the invasion of Ukraine. The company wrote down over $4 billion after Moscow blocked a sale of its stake in Sakhalin-1, effectively seizing the asset. Exxon labeled the move as expropriation.
Sakhalin, a flagship investment first signed in 1995, had accounted for roughly 3% of Exxon's oil production before its exit.
Moscow views Exxon's reentry as a strategic win, using foreign investment prospects to bolster its war-battered economy and push for sanctions relief.
The Kremlin recently signed a decree allowing foreign companies to regain ownership in Sakhalin's operating firm, provided they bring equipment and advocate for eased restrictions.
Sakhalin oil continues to flow mainly to Asian buyers, who have remained steady customers since the conflict began.
Any Exxon comeback would require favorable terms to offset past losses and contend with Russia's shifting economic climate. The Kremlin has tightened its grip on energy assets, while asset seizures and high interest rates have weighed on foreign investors.
Meanwhile, Trump's fluctuating stance toward Vladimir Putin adds uncertainty, with renewed business ties likely hinging on progress in peace negotiations.
Earlier this month, ExxonMobil Guyana initiated production at the Yellowtail development in the offshore Stabroek block of Guyana.
The ONE GUYANA floating production storage and offloading (FPSO) vessel started operations, joining the Destiny, Unity and Prosperity FPSOs and lifting total installed capacity in Guyana above 900,000 barrels per day.
Exxon achieved its highest second-quarter Upstream production since the Exxon-Mobil merger more than 25 years ago. Total production reached 4.6 million oil-equivalent barrels per day, a 13% increase from the first half of 2024, driven largely by the Pioneer Natural Resources acquisition and record output from the Permian Basin.
Price Action: XOM stock is down 0.14% at $111.33 during the premarket session at the last check on Wednesday.
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