The Hindu Business Line : First cargo of crude from Sakhalin-1 arrives

India, which received its first cargo of crude oil of 7,00,000 barrels from Sakhalin-1 project in Russia on Friday, is expecting another shipment of a similar size by the end of this month.

Speaking to newspersons, Mr R.S. Butola, Managing Director, OVL, said, "This import was to check the logistics and the refinery's ability to process this crude. It is also a signal to the market that India can process its own crude oil and not be dependent on the market for its entire imports."

In talks with refiners

OVL is in talks with refiners such as Hindustan Petroleum Corporation and Indian Oil Corp for selling the Sakhalin crude. The selling would be done through a tendering process. India's share of crude oil from Sakhalin-I will reach 2.4 million tonnes a year in 2007 and start to decline after five years. In the Sakhalin project, OVL has 20 per cent stake with Exxon Mobil being the operator having 40 per cent stake.

Sakhalin-I project will reach the peak rate of 12 million tonnes per year once a new onshore crude processing unit is commissioned this month. OVL's share will be 20 per cent. OVL, the overseas arm of Oil and Natural Gas Corp (ONGC), has shipped the first parcel from its share of oil from the Sakhalin-I project.

Tanker Viktor Titov has arrived here on Friday morning. A formal function marking the arrival of the 700,000 barrels of crude from Yuzhno-Sakhalinsk will be held on Saturday. The crude will be processed at ONGC's subsidiary, Mangalore Refinery and Petrochemicals Ltd (MRPL).

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