The operator of the Sakhalin 1 oil and gas offshore development in Russia, Exxon Neftegaz, plans to downsize some activities on Sakhalin Island in the country’s far east in response to dire energy prices and and Covid-19-related challenges.

Exxon Neftegaz, in which US supermajor ExxonMobil has a 30% stake, said in an emailed statement to Reuters that “it is looking to reduce spending in response to market conditions, and evaluating all appropriate steps to reduce capital and operating expenses in the near term”.