Reuters: India's ONGC Applies to Retain 20% in Russia's Sakhalin-1

Nidhi Verma
Tuesday, November 8, 2022

India's Oil and Natural Gas Corp has applied to the new Russian operator of the Sakhalin-1 to retain its stake in the oil and gas project in the Far East, a person familiar with the development said. 

Russia has established a new entity, managed by a Rosneft subsidiary, that owns investor's rights in Sakhalin 1 after the exit of previous operator ExxonMobil. 

Moscow gave the state-run company the authority to decide whether foreign shareholders can retain their participation.

 "Yes," said the person when asked if ONGC has applied to retain its stake in the project. ONGC holds a 20% stake through its overseas investment arm ONGC Videsh. ONGC Videsh and Rosneft did not immediately respond to a Reuters request for comment. 



Prior to formation of the new entity, Exxon and Sakhalin Oil and Gas Development Co (SODECO), a consortium of Japanese firms, held a 30% stake each in the project. Russian oil major Rosneft through Sakhalinmorneftegaz-shelf and R N Astra owned the remaining 20% share. 

Foreign shareholders were given a month to Nov. 12 to decide about their stakes. Last week, the Japanese consortium also decided to stay in the project in a move welcomed by Tokyo. Sakhalin-1 has turned out to be a money spinner for ONGC Videsh, and accounted for about a quarter of its proved reserves of 124.7 million tonnes in the year ended March 31, 2022. 

Sakhalin-1 was producing 220,000 bpd before Russia invaded Ukraine in February. Its output collapsed, however, after Exxon refused to accept Russian insurance cover for the tankers as Western insurers pulled out due to the sanctions, according to industry sources. 

Production from Sakhalin has appeared to have recovered after a change in its operator and industry sources have said the new Russian entity plans to restore oil output levels on Sakhalin-1 shortly. 

(Reuters - Reporting by Nidhi Verma/Editing by Tomasz Janowski)

Categories: Energy Activity Production Asia Regulations

Related Stories

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

RINA Wins FEED Contract for Petronas’ Flagship CCS Project in Malaysia

Pakistan, Türkiye Deepen Oil and Gas Ties with Offshore Indus-C Block Deal

Vietsovpetro Brings BK-24 Oil Platform Online Two Months Early

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

MDL Secures Cable Laying Job in Asia Pacific

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

Brownfield Output Decline Accelerates, says IEA

Norwegian Oil Investment Will Peak in '25

Current News

Sponsored: UAE Breaks Ground on World First Gigascale Renewable Energy Project

Pertamina Joins Petronas in Ultra-Deepwater Asset off Indonesia

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Southeast Asia’s 2GW Cross-Border Offshore Wind Scheme Targets 2034 Buildout

Pharos Energy Kicks Off Drilling Campaign Offshore Vietnam

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

US Pressure on India Could Propel Russia's Shadow Oil Exports

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

RINA Wins FEED Contract for Petronas’ Flagship CCS Project in Malaysia

ABL Secures Rig Moving Assignment with India's ONGC

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com