- The Sakhalin-1 project saw production tumble after Exxon refused to accept local insurance for tankers, sourced told Reuters.
- Western firms stopped insuring tankers operated by state-run Sovcomflot after Russia invaded Ukraine.
- The EU's next round of sanctions against Moscow will include a broader ban on Russian oil tanker insurance, among other energy-related services.
According to Business Insider, an American financial and business news website published on October 18, 2022, a Russian oil project led by Exxon Mobil saw production tumble after the US company refused to accept local insurance for tankers, offering a potential clue on what could happen to Moscow's energy sector after new European sanctions take hold.
Sources told Reuters that output at the Sakhalin-1 Russian Pacific project cratered to just 10,000 barrels per day this year from 220,000 bpd before Russia invaded Ukraine.
Production collapsed after Western companies stopped insuring tankers operated by state-run Sovcomflot, which was targeted by an earlier round of sanctions, according to Reuters.
Exxon's Russian unit, Exxon Neftegas, has had trouble chartering tankers because of the sanctions and has refused to work with Sovcomflot, the report said.
