Florence Tan, Sabrina Valle

(Reuters) –Exxon Mobil Corp announced Wednesday that its Russian unit Exxon(NYSE:) Neftegas Ltd had declared force majeure in respect to its Sakhalin-1 operations, due to the sanctions against Russia which have made it more difficult for crude oil to be shipped to customers.

Sakhalin-1 produces Sokol from Sakhalin Island, Russian Far East. It exports approximately 273,000 barrels per hour mainly to South Korea and other countries such as Australia, Thailand, Japan and the United States.

Exxon announced on March 1 that it will exit approximately $4 billion of assets and cease all Russia operations including Sakhalin 1. This was in response to Moscow’s February 24 invasion of Ukraine.

Exxon spokesperson Julie King wrote that Sakhalin 1 is being exited by the oil producer. This involves addressing commercial and contractual obligations.

King explained that Sakhalin-1 is an operator and has the responsibility to protect the environment and ensure safety.

Exxon also has significantly reduced its Russian chemical and oil lubricant business and stopped selling any chemical or lubricant products to Russia and Belarus.

Sakhalin Oil and Gas Development group in Japan and ONGC Videsh the Indian explorer are among those involved. They have difficulty chartering oil tankers from a region that requires ice vessels for navigation.

This is due to growing concern from shippers about reputation risk, and increasing difficulties for Russian assets finding insurance coverage.

King stated that Exxon Neftegas Ltd had reduced crude oil production as a result.

According to Refinitiv Eikon data, Captain Kostichev was the latest Aframax oil tanker to carry crude to Russia’s De Kastri port. This is where Sakhalin-1 oil is loaded. It is currently located at De Kastri port.

Victor Konetsky, another Aframax vessel, and Yuri Senkevich are also empty. They can be seen floating around the port.

Japan’s Sakhalin consortium owns 30% of the project. Exxon declined to comment.