NEW DELHI:
India’s Oil and Natural Gas Corp (ONGC.NS) plans to take a stake in the brand new Russian entity that can handle the Sakhalin 1 mission in the far east because it seeks to retain a 20% share in the asset, three sources accustomed to the matter stated.
Russian President Vladimir Putin earlier this month issued a decree to determine a brand new operator for the ExxonMobil (XOM.N)-led mission and authorised the Kremlin to determine whether or not overseas shareholders may retain stakes in Sakhalin 1.
“ONGC Videsh will protect its share in the project, which means it will take a stake in the new entity,” stated one of many sources.
ONGC holds a stake in the mission by way of its abroad funding arm ONGC Videsh.
The new Russian entity, managed by Rosneft subsidiary Sakhalinmorneftegaz-shelf, will personal traders’ rights in Sakhalin 1. Foreign shareholders have one month to determine on retaining stakes in the mission.
Output of Sakhalin 1 collapsed after Exxon declared drive majeure in April and refused to simply accept Russian insurance cowl for the tankers as western insurers pulled out because of the sanctions, sources stated.
Sakhlin 1 was producing 220,000 bpd earlier than Russia launched its so-called “special military operations” in Ukraine.
Operatorship of the mission by a Russian entity will result in clean functioning of Sakhalin 1 and would guarantee transport of oil, the sources stated.
Published in The Express Tribune, October 19th, 2022.
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