Exxon Mobil To Wind Down Russian Arctic Drilling Campaign

(RTTNews) - Oil giant Exxon Mobil Corp. (XOM) said it is complying with all U.S. sanctions, and is winding down the University-1 well in the sensitive Kara Sea arctic environment.

In a statement, the firm said, "The U.S. Treasury Department, recognizing the complexity of the University-1 well and the sensitive Kara Sea arctic environment, has granted a license to ExxonMobil and other U.S. contractors and persons involved to enable the safe and responsible winding down of operations related to this exploration well."

Exxon Mobil said the license recognizes the need to protect the safety of the individuals involved in these operations as well as the risk to the environment.

All activities related to the wind down would proceed as safely and expeditiously as possible, the firm said.

In the wake of the fresh sanctions imposed on Russia for its involvement in the Ukraine crisis, the $700 million project, a joint venture with Russia's Rosneft (ROSN.L), will now be placed on indefinite hold.