Report: Exxon, Rosneft to stop Kara Sea drilling on October 10

ExxonMobil and Rosneft are still drilling at the University-1 well in the Kara Sea, off the Russian northern coast, contrary to the reports that the operations have been halted due to the U.S. sanctions imposed against Russia.

As previously reported, all U.S. companies have until September 26 to halt operations related to the exportation of goods, services, or technology in support of exploration or production for Russian deepwater, Arctic offshore, or shale projects that have the potential to produce oil, to five Russian energy companies – Gazprom, Gazprom Neft, Lukoil, Surgutneftegas, and Rosneft – involved in these types of projects.

According to Reuters, which today cited Russian Deputy Energy Minister Kirill Molodtsov, the U.S. oil giant ExxonMobil and Russia’s Rosneft, will continue operations at the Kara Sea well past the originally imposed September 26 deadline.

The operations are now expected to cease on October 10, Molodtsov has said.

In a statement issued late Friday, ExxonMobil has confirmed it will stop its drilling operations in the Kara Sea to comply with the sanctions imposed against Russia by the U.S. Treasury Department for its involvement in the Ukraine crisis.

The well is being drilled using the West Alpha semi-submersible drilling rig, owned by North Atlantic Drilling.