ExxonMobil has been given extra time by the U.S. Treasury Department to abandon the exploration well drilled by the U.S. major in partnership with Russia’s Rosneft in the Kara Sea.

The operator said the U.S. Treasury Department, recognizing the complexity of drilling the University-1 well, has given it (along with its U.S. contractors involved) a special license to safely wind down operations on the probe, drilled with the West Alpha semisubmersible rig in a water depth of 80 m (262 ft).

Treasury Department officials had imposed sanctions on the drilling operation in retaliation for Moscow’s support for Ukrainian separatists, and gave U.S. firms until 26 September to wind down exploration or joint ventures with Rosneft and other Russian entities.

Originally Exxon and Rosneft were planning to drill the well to a depth of 2,350 m (7,708 ft).

  • Four anchor handling tug supply vessels supplied for work in the Kara Sea won’t be affected by current EU and U.S. sanctions against Russia. Viking Supply has provided three ice-class vessels and one icebreaker under contracts with an unnamed client for the 2014 and 2015 drilling seasons, with options for the 2016 and 2017 seasons also, starting in May each year.

Viking said its does not expect the EU and U.S. sanctions to affect its operations and financial performance in 2014 and adds that it is too early to determine if the sanctions will impact drilling seasons in 2015 and beyond.