NEW DELHI, Nov 7 (Reuters) – India’s Oil and Natural Gas Corp (ONGC.NS) has utilized to the brand new Russian operator of the Sakhalin-1 to retain its stake in the oil and fuel venture in the Far East, an individual aware of the event stated.
Russia has established a brand new entity, managed by a Rosneft subsidiary, that owns investor’s rights in Sakhalin 1 after the exit of earlier operator ExxonMobil (XOM.N). Moscow gave the state-run firm the authority to resolve whether or not international shareholders can retain their participation.
“Yes,” stated the particular person when requested if ONGC has utilized to retain its stake in the venture.
ONGC holds a 20% stake via its abroad funding arm ONGC Videsh.
ONGC Videsh and Rosneft didn’t instantly reply to a Reuters request for remark.
Prior to formation of the brand new entity, Exxon and Sakhalin Oil and Gas Development Co (SODECO), a consortium of Japanese companies, held a 30% stake every in the venture.
Russian oil main Rosneft via Sakhalinmorneftegaz-shelf and R N Astra owned the remaining 20% share.
Foreign shareholders got a month to Nov. 12 to resolve about their stakes.
Last week, the Japanese consortium additionally determined to keep in the venture in a transfer welcomed by Tokyo.
Sakhalin-1 has turned out to be a cash spinner for ONGC Videsh, and accounted for a few quarter of its proved reserves of 124.7 million tonnes in the 12 months ended March 31, 2022.
Sakhalin-1 was producing 220,000 bpd earlier than Russia invaded Ukraine in February. Its output collapsed nonetheless after Exxon refused to settle for Russian insurance cowl for the tankers as Western insurers pulled out due to the sanctions, in accordance to trade sources.
Production from Sakhalin has appeared to have recovered after a change in its operator and trade sources have stated the brand new Russian entity plans to restore oil output ranges on Sakhalin-1 shortly.
Reporting by Nidhi Verma
Editing by Tomasz Janowski
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