Exxon Neftegas Limited (ENL; russian: Эксон Нефтегаз Лимитед) is a defunct subsidiary of the American oil company
ExxonMobil
ExxonMobil Corporation (commonly shortened to Exxon) is an American multinational oil and gas corporation headquartered in Irving, Texas. It is the largest direct descendant of John D. Rockefeller's Standard Oil, and was formed on November 3 ...
which operated mostly in
Russia
Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-ei ...
, notably
Sakhalin
Sakhalin ( rus, Сахали́н, r=Sakhalín, p=səxɐˈlʲin; ja, 樺太 ''Karafuto''; zh, c=, p=Kùyèdǎo, s=库页岛, t=庫頁島; Manchu: ᠰᠠᡥᠠᠯᡳᠶᠠᠨ, ''Sahaliyan''; Orok: Бугата на̄, ''Bugata nā''; Nivkh ...
and other parts of the
Far East
The ''Far East'' was a European term to refer to the geographical regions that includes East and Southeast Asia as well as the Russian Far East to a lesser extent. South Asia is sometimes also included for economic and cultural reasons.
The t ...
. ENL was the primary American operator (as well as 30% owner) of
Sakhalin-I Consortium, which oversaw exploration and production of oil and gas on both Sakhalin island and in the Chayvo, Odoptu and Arkutun-Dagi fields in the
Sea of Okhotsk.
The subsidiary is incorporated in the
Bahamas
The Bahamas (), officially the Commonwealth of The Bahamas, is an island country within the Lucayan Archipelago of the West Indies in the North Atlantic. It takes up 97% of the Lucayan Archipelago's land area and is home to 88% of the a ...
and has an office in
Yuzhno-Sakhalinsk.
Exxon Neftgas was led by future ExxonMobil CEO
Rex Tillerson
Rex Wayne Tillerson (born March 23, 1952) is an American engineer and energy executive who served as the 69th U.S. secretary of state from February 1, 2017, to March 31, 2018, under President Donald Trump. Prior to joining the Trump administ ...
from 1998 to at least May 2001.
Founding
ENL was first founded on April 26, 2001, when
ABB and ExxonMobil signed an agreement for ABB to design the front-end systems of the Sakhalin-I project's first phase. ENL was formally declared as commercial on October 29 of that same year, representing a $12 billion USD ($20 billion today) investment, the largest
foreign direct investment
A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct c ...
into Russia at the time.
Across the 2000s, ENL awarded multiple contracts for logistics relating to the project, including
Amur Shipbuilding Plant
OJSC Amur Shipbuilding Plant (russian: Амурский судостроительный завод, ''Amurskiy Sudostroitelnyy Zavod'', and also called the "Leninskiy Komsomol Shipyard") is an important shipyard in eastern Russia, based in Koms ...
,
Sakhalinskiye Aviatrassy,
Fesco Transport,
Vostok Aviation,
Sovcomflot
Sovcomflot (russian: ПАО «Совкомфлот», ПАО «Современный коммерческий флот», , Modern Commercial Fleet). Sovcomflot is Russia's largest shipping company, and one of the global leaders in the maritime ...
, and
Lukoil. On July 12, 2003, ENL began drilling at the Chavyo wellsite, the project's first extended-reach drillsite. Later in 2005, ExxonMobil announced that ENL has start up production on the project, and that by 2006, the project could produce 250,000 barrels per day.
In 2007, ENL broke a world drilling record for the world's longest extended-reach oil well at 37,016 feet; it superseded its record in 2008 by 1,306 more feet. Also in 2007, ENL announced it had passed 100 million barrels produced from Sakhalin.
Fate
Upon Russia's
2022 invasion of Ukraine, Exxon announced that it would pull out of Russia immediately, including ENL and the
Sakhalin-I
The Sakhalin-I (russian: Сахалин-1) project, a sister project to Sakhalin-II, is a consortium for production of oil and gas on Sakhalin Island and immediately offshore. It operates three fields in the Okhotsk Sea: Chayvo, Odoptu and Ark ...
project. Exxon's pullout announcement was published on March 1, 2022, and paired with statement in support of Ukraine, though Russia attempted to halt the pullout by passing legislation which barred energy companies based in "unfriendly countries" from pulling out of Russian energy projects. ExxonMobil responded by announcing that it would sue the
Federal government of Russia in August unless it would be allowed to exit the country.
References
External links
*
Exxon Mobile Rewards
{{ExxonMobil
ExxonMobil subsidiaries
Oil companies of Russia
Companies based in Yuzhno-Sakhalinsk