Houston-based ConocoPhillips has offloaded 50 percent stake in Polar Lights, the joint venture with Russian government company Rosneft. ConocoPhillips has confirmed that it sold the stake to Trisonnery Asset Limited. 

ConocoPhillips along with Russian energy giant Rosneft floated the joint venture entity Polar Lights in 1992. Financial Times first reported about the stake sale. However, the financial details about stake sale were not disclosed.

According to a report by CNN Money, ConocoPhillips said that with the latest stake sale, it no longer has operations in Russia, which is world's second largest oil producer and second largest oil exporter as well, according to International Energy Agency (IEA). 

The withdrawal of ConocoPhillips from Russia indicates the challenges being faced by foreign companies. The political tensions coupled with falling oil prices are taking a toll on overseas companies having operations in Russia.

Tahne Gustafson, author of 'Wheel of Fortune,' on Russian oil industry, said: "There haven't been that many western oil companies that have managed to make money in Russia. He pointed to BP, ExxonMobil and Schlumberger as three exceptions.

Quoting a person familiar with the matter, The Financial Times reports that stake sale in Polar Lights is estimated to be in the range of $150 million to $200 million. ConocoPhillips' exit from the Russia not only indicates turbulent situation for foreign investment but also growing pull of investment in the shale oil boom in the US.

Western oil companies made a beeline to Russia after the collapse of Communism in the country. Several oil majors from the west landed in Russia with major plans and investments for oil exploration. Now, some energy companies in Russia are downsizing their operations. 

Another report by The Wall Street Journal (WSJ) states that the state-run OAO Rosneft has also recently sold its 50 percent stake in Polar Lights. From early 2015 onwards, ConocoPhillips was trying to sell $2.3 billion worth assets.

The company is keen to withdraw from non-core holdings and slashing costs amid lower energy prices.

Moreover, energy assets have been brought under state control or placed under control of people, who're closer to the Kremlin. Western sanctions on Russia are also impacting the oil and gas industry. Russia has been facing Western sanctions following its intervention in Ukraine. 

The continuous drop in oil price is also forcing oil companies including ConocoPhillips to slash investments and downsize the headcount. ConocoPhillips in 2005 entered into a partnership with Lukoil. It had about 20 percent stake in the Russian oil giant. However, seven years later, ConocoPhillips totally offloaded its stake in Lukoil. 

ConocoPhillips in 2015 sold its stake in Polar Lights. With this, ConocoPhillips has totally withdrawn from Russia after 23 years of existence in the country.