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Output at oil and gas project collapses amid insurance dispute


Oil production at the ExxonMobil-led Sakhalin-1 Russian Pacific oil and gas project has reportedly collapsed since ExxonMobil refused to accept insurance covers provided by Russian insurers for tankers, Nasdaq reported citing newspaper Kommersant. Exxon refused to take Russian state-owned shipping company Sovcomflot’s tankers and the local insurance arrangements made by it. Meanwhile, western insurers have withdrawn their insurance covers for the Russian tankers amid sanctions.


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