The Hindu Business Line : ONGC Videsh sees early production in Russian oil field

At an estimated total project cost of $12 billion (around Rs 52,800 crore), Sakhalin-I is scheduled to be the largest recipient of FDI in Russia. OVL holds 20 per cent stake in the project located off the eastern coast of Russia. The company has proposed to invest $2.77 billion in the project, for ensuring oil security of India.

Apart from OVL, the other consortium members of the project are Exxon Neftegas Ltd (30 per cent), Sakhalin Oil and Gas Development Ltd, (30 per cent), SMNG-S (11.5 per cent) and RN Astra (8.5 per cent). Exxon-N, an affiliate of Exxon Mobil, is the operator of the project.

Informed sources in ONGC told Business Line that the consortium was now planning to commence "early production" of gas from Chyvo field under Sakhalin project for faster revenue generation.

More importantly, there could be escalation of recoverable reserve in Sakhalin from the previous estimates of 307 million tonnes of oil and 485 billion cubic metres of natural gas, sources point.

As the plateau rates of production may undergo an upward revision with enhancement of reserve, OVL stands to gain in terms of equity oil share and also recovery of investments. According to latest projections, the project may produce up to 3.5 lakh barrels of oil per day as against the original estimates of plateau production rates of 2.5 lakh barrels per day and 1,030 million standard cubic feet of gas per day.

OVL, in the Greater Nile Oil Project (GNOP) in Sudan where it holds 25 per cent stake, has already witnessed an increase in oil recovery from 2.7 lakh barrels per day to 3.27 lakh barrels per day .

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