Exxon Mobil Corp. ( XOM ) has reportedly entered into a preliminary, non-binding arrangement with Russia’s Rosneft to explore avenues for recovering billions lost after its withdrawal from Russian operations in 2022.

The deal, signed in late August or early September, represents the first tangible framework for Exxon to potentially claw back the $4.6 billion write-down tied to its exit, Reuters reports.

The development marks a cautious step toward commercial dialogue between the two energy giants, though further progress remains dependent on advances toward a peace settlement in Ukraine and a relaxation of U.S. and European sanctions.

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Discussions on potential compensation began in 2023 and were ongoing when Exxon CEO Darren Woods confirmed to reporters last week that negotiations centered on recouping losses. He stopped short of elaborating on the scope of any agreement, the report adds.

At the center of Exxon’s write-down was its 30% operator stake in the Sakhalin-1 project off Russia’s Pacific coast.

The company’s departure resulted in the loss of access to 150 million barrels of proven oil equivalent reserves.

The island’s governor, Valery Limarenko, recently remarked that Exxon’s involvement would accelerate regional energy development efforts.

According to Benzinga Pro, XOM stock has lost over 2% in the past year. Investors can gain exposure to the stock via Global X Funds Global X PureCap MSCI Energy ETF .

In a separate release, ExxonMobil ( XOM ) has reached a final investment decision on the Hammerhead development offshore Guyana after securing government approvals, aiming for first oil in 2029.

As the seventh project on the Stabroek block, Hammerhead will use an FPSO designed to produce about 150,000 barrels per day, pushing total installed block capacity toward 1.5 million bopd.

The plan calls for $6.8 billion in spending and 18 production and injection wells.

Exxon says total commitments across the seven approved Stabroek projects now exceed $60 billion, supporting jobs, local suppliers, and further investment.

Since production began in 2019, more than $7.8 billion has flowed into Guyana’s Natural Resource Fund.

Price Action: XOM shares were trading higher by 0.40% to $114.41 at last check Wednesday.

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