Exxon, Rosneft wind down Kara Sea drilling

As part of the fallout from sanctions against Russia over the Ukraine crisis, ExxonMobil and Rosneft are winding down the drilling of the Universitetskaya-1 exploration well in the Kara Sea in the Russian Arctic. The two companies started drilling the well in early August, as part of a new, joint Arctic exploration program. But, in response to Russian involvement in the Ukraine, the United States and the European Union have imposed a range of sanctions, including prohibitions on support for oil exploration in the Russian Arctic offshore.

In a Sept. 19 press release ExxonMobil said that the U.S. Treasury Department is allowing some extra time “to enable the safe and responsible winding down of operations related to this exploration well.”

“All activities related to the wind down will proceed as safely and expeditiously as possible,” the company said.

And according to a report in Reuters, Russian Deputy Energy Minister Kirill Molodtsov said on Sept. 23 that operations would continue at the well site until Oct. 10.

- Alan Bailey