Exxon may sue Russian gov't

When I saw this, I actually laughed. It reminded me of the punch line of one of my favorite jokes.* But XOM is apparently serious. I sold my XOM stock because of the size of their investments in Russia at the start of the Ukraine invasion since I figured they would be stiffed.

https://www.google.com/search?client=firefox-b-1-d&q=xom…

If XOM can sue Russia, can Ukraine sue Russia for damages? The destruction of entire cities, not to mention civil damages for murder and war crimes?

https://www.wsj.com/articles/exxon-escalates-dispute-with-ru…

**Exxon Escalates Dispute With Russia Over Barred Exit From Giant Oil Project**
**U.S. oil company says it will sue unless Moscow lifts decree banning it from selling stake in Sakhalin-1 venture**
**By Collin Eaton and Timothy Puko, The Wall Street Journal, Aug. 30, 2022**

**Exxon Mobil Corp. has notified Russian officials it will sue the federal government unless Moscow allows the company to exit a major oil-and-gas project, according to people familiar with the matter.**

**A Kremlin decree banning certain transactions through the end of the year has blocked Exxon since early August from transferring operatorship and selling its 30% stake in the Sakhalin-1 venture in Russia’s Far East. Before the decree, Exxon had said in regulatory filings that it was transitioning operating activities to another party following Russia’s invasion of Ukraine.**

**Russia’s move to bar such transactions, which President Vladimir Putin can decide to extend beyond 2022, inhibits Exxon’s rights and impedes its ability to safely exit the project’s operations, the company said in a statement....**

**Exxon Mobil declared force majeure in April, and has since reduced production to about 10,000 barrels of oil and gas a day from 220,000.... The U.S. oil company took a $3.4 billion accounting charge related to its Russia exit in the first quarter....** [end quote]

Rights? Inhibiting Exxon’s rights? Since when does Russia care about rights?

I bought XOM in March 2020 when the price of oil was negative due to a squabble between Russia and Saudi Arabia. I liked that Exxon had planned to invest billions of dollars for years to come in the Sakhalin project since that’s a rich oil field and I think that the world will continue to demand oil. But I sold when Putin invaded Ukraine because Russian history is chock full of expropriation and XOM was vulnerable.

Shell and BP have taken multi-billion dollar hits on their Russian oil investments.

Since the oil companies can’t exactly pick up their marbles and go home, I think that Putin’s response to the lawsuit threat will be a guffaw and “Pound sand.”

Wendy

  • An engineer dies. When his soul goes to the sorting room, the senior angel is on break. An inexperienced junior angel erroneously sends the engineer’s soul to Hell.

The engineer doesn’t like Hell at all. It’s very hot. There’s a lake of liquid $h!t which stinks. Aside from the glow of brimstone, it’s very dark and gloomy.

The engineer gets to work. He installs ventilation and air conditioning. He drains the lake of $h!t. He installs lighting and brightens the gloom.

When the senior angel returns from break, he realizes that the junior angel made a mistake and notifies God.

God calls Satan. “Satan, unfortunately a mistake was made. An engineer who belongs in Heaven was erroneously sent to Hell.”

Satan answered, “This is the first engineer we have ever had here in Hell. I’ve been in Hell a long time. It was really miserable. This engineer has fixed it up so it’s pretty nice now. I need him to maintain the infrastructure he installed. I’m not sending him back.”

God said, “You have to send him to Heaven!”

Satan said, “No way! I won’t!”

God said, “I’ll sue!”

Satan said, “Oh, yeah? Where are you going to find a lawyer?”

15 Likes

There is a risk in investing in repressive dictatorships. I have to laff every time a US company goes in to China, partnering with a Chinese company, as required by Chinese law, then crying when their Chinese partner steals their technology.

Steve

4 Likes

If XOM can sue Russia, can Ukraine sue Russia for damages?

Sue is one thing. Collect is another. See? Si!

The Captain
whose comic skit is that from?

3 Likes

Oooo, that’s a really good joke.

Oooo, that’s a really good joke.

https://www.youtube.com/watch?v=Gy1ztCTrBEU

The Captain

1 Like

Russian history is chock full of expropriation and XOM was vulnerable.

Well first off, the Sakhalin-1 project is already calculated in their revenue statement, ExxonMobil has already booked an after-tax charge of $3.4 billion as a result of its decision to walk away from its Russian investments.

I see that you sold XOM Just as oil prices were predicted to skyrocket?
XOM +52% YTD.
And it seems that you bought XOM when oil prices were plummeting.

Interesting choices…

3 Likes