Russia: Exxon cannot book new Sakhalin reserves

Russia’s resources ministry has told Exxon Mobil Corp. it will not automatically enlarge the licence territory of Exxon’s Sakhalin-1 oil and gas block, despite the discovery of new reserves near or at existing deposits.

The ministry said in a statement that its representatives had told the U.S. oil major, which is developing Sakhalin-1 under a decade-old production sharing agreement (PSA), that they would auction the newly discovered deposits.

cnn