Russia's Sakhalin-1 Oil Production Back at Peak 200,000 bpd, ONGC Says

Monday, May 29, 2023

India's state-run Oil and Natural Gas Corp said oil output from the Sakhalin-1 project in Russia has bounced back to its plateau level of about 200,000 barrels per day (bpd) from zero, according to a company presentation.

ONGC hopes to reclaim its 20% stake in the project in coming months after some 'terms and conditions' are fulfilled, Rajarshi Gupta, managing director of ONGC Videsh, the overseas investment arm of ONGC, said at a news conference.

ONGC last year applied to the new Russian operator of Sakhalin-1 to retain its stake in the oil and gas project in the country's Far East, a person familiar with the development said in November.

Gupta said ONGC Videsh is "not in a hurry" to repatriate its less than $100 million pending dividend from the Russian project and could consider reinvesting it in the project.

ONGC Videsh also has a 26% stake in Russia's Vankorneft, a company that owns Vankor Field and the North Vankor licence.

Gupta also said that ONGC Videsh along with other state-run companies are studying recent changes in the terms announced by Guyana for its latest exploration and licensing round for a participation.

Apart from Russia, there is also a dividend pending from ONGC's stake in Venezuela's San Cristobal project in the Orinoco heavy oil belt.

Gupta said ONGC is in talks with U.S. authorities to receive Venezuelan oil against its pending dividend. He did not elaborate on the amount that the Indian company is yet to receive from Venezuela.

Last year the Treasury gave Chevron Corp (CVX.N) a licence to expand operations in Venezuela and export crude to the United States.

ONGC, which has set a 2038 net zero goal, is hoping that gas output from its Mozambique project will start from 2026-27, Chairman A. K. Singh said.

The project, operated by TotalEnergies, was initially set to deliver its first cargo in 2024.

Services group Saipem said it was notified by TotalEnergies to prepare for a restart in July.

(Reuters - Reporting by Nidhi Verma and Rajendra Jadhav; editing by Philippa Fletcher and Jason Neely)

Categories: Energy Industry News Activity Production Asia

Related Stories

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

MODEC and Terra Drone Renew FPSO Drone Inspection Partnership

Wood JV Gets EPC Job for Shell off Brunei

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

ABL Lands Work on BP’s Indonesian Gas and CCUS Project

CNOOC Puts Into Production New Oil Field in South China Sea

Pakistan’s OGDC to Start Production at ADNOC’s Offshore Block by 2027

CNOOC Starts Production at Two New Oil and Gas Projects

Valeura Wraps Up Infill Drilling Campaign in Gulf of Thailand

Current News

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

Yinson Production, “K” LINE Target Europe's CCS with FSIU and LCO2 Solutions

Woodside Agrees Long-Term LNG Supply with Petronas Unit

MODEC and Terra Drone Renew FPSO Drone Inspection Partnership

Yinson Production Closes $1B Investment to Drive Further Growth

Petronas-Eni Upstream Joint Venture to Take Up to Two Years to Set Up

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