U.S. Denies Permission for ExxonMobil to Resume Drilling Operations Due to Sanctions, Russia
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The US has refused to give permission for oil and gas firm Exxon Mobil to resume drilling in the areas facing its sanctions in Russia.
In 2014, the US, along with the European Union, had imposed sanctions on Russia for its take over of the Crimea region and its involvement in the conflict in eastern Ukraine.
Due to sanctions, the US oil producer had to shut down drilling operation in the Arctic region of Russia that year.
The US Treasury Secretary Steven Mnuchin was quoted by Reuters as saying: “In consultation with President Donald J. Trump, the Treasury Department will not be issuing waivers to US companies, including Exxon, authorizing drilling prohibited by current Russian sanctions.”
As per the Wall Street Journal reports, Exxon has requested for a waiver with Treasury Department to start drilling with Russian oil producer Rosneft.
The US firms often file license applications with the Treasury Department to seek permission for resuming operations, while the government takes into account national security interests to weigh them.
Claimed to be the largest publicly traded international oil and gas firm, ExxonMobil was formed by the merger of Exxon and Mobil in 1999.
Based in Irvine of Texas, the company operates upstream, downstream and chemical businesses.
In March, the firm announced plans to invest $20bn in its refining and chemical manufacturing projects in the US Gulf Coast through 2022.
Source: (April 24, 2017) Energy Business Review
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