MOSCOW (Sputnik) — The Russian government will enter into an amicable agreement with the ExxonMobil oil and gas corporation on a tax dispute over the Sakhalin-1 project, according to a Russian government order signed by Prime Minister Dmitry Medvedev.
"Agree with the proposal of the Russian Finance Ministry to conclude an amicable agreement within the framework of the legal proceedings on a lawsuit filed by Exxon Neftegaz Limited on the recovery of funds under the production sharing agreement for the Sakhalin-1 project submitted to the Arbitration Institute of the Stockholm Chamber of Commerce," the order, posted on the government's legal information portal, said.
The Russian Finance Ministry has commented on the agreement, saying that the sides have reached a "mutually beneficial compromise,"
The announcement comes a week after Russian President Vladimir Putin said that the Russian government had agreed with ExxonMobil to resolve issues concerning the Sakhalin-1 project.
ExxonMobil is the operator of the Sakhalin-1 offshore project with Japanese Sodeco, Russia's Rosneft and Indian ONGC being the other participants in the project.
Sakhalin-1 is a large-scale project, carried out under a production sharing agreement (PSA), signed in 1996. The production is being carried out on the northeastern shelf of Sakhalin Island.