Russia has reached an out-of-court settlement with ExxonMobil regarding its tax dispute over Sakhalin 1, the Russian government’s press office confirmed in a statement.
"The parties reached a mutually advantageous compromise," it said. Exxon Neftegas, Exxon’s Russian subsidiary and the operator of Sakhalin 1, has been trying since 2008 to secure a reduction in the project’s profit tax rate from the 35% set in the production-sharing agreement.
Exxon estimates the disputed taxes had amounted to $637 million as of March this year.
It suggested half of...