The Hindu Business Line : Rosneft eyes stake in ONGC’s Mangalore LNG terminal

New Delhi, Feb. 13 Russia’s OAO Rosneft has expressed interest in participating in ONGC’s proposed liquefied natural gas (LNG) terminal in Mangalore. “Rosneft is looking into Mangalore LNG plant in a big capacity,” said Mr Sergey Mikhaylov, Head of Department of State Policy in Energy Sector, Ministry of Industry and Energy of the Russian Federation.

ONGC is planning to set up a five-million-tonne-per-annum LNG terminal at Mangalore. Mr Mikhaylov said Indian companies, including ONGC Videsh Ltd (OVL), are keen to participate in oil and gas fields in Siberia and Far-East Russia. “Such expansion is quite realistic. Russian companies are also willing to facilitate the participation,” he said at a business meeting here on Wednesday.

“India has investments in Sakhalin-1. That is not sufficient to meet the country’s rising energy demand,” he said, adding that “more opportunities to participate in oil exploration in Siberia and the Far East are coming up.” India is looking to invest in oil projects in Russia, Kazakhstan, Iran and Africa to secure the nation’s oil requirements.

Sakhalin-III bid

ONGC is keen on taking a stake in Russia’s Sakhalin-III. OVL, the overseas arm of ONGC, has proposed to team up with Rosneft to bid for the giant Sakhalin-III Project in Far East Russia. “The Russian Government is studying very closely ONGC’s proposal on Sakhalin-III. A decision is expected soon,” he told reporters.

Moscow plans to develop 12 new oil fields in the near future in the East and was talking to various investors. He said Russian firms were keen to participate in the latest round of auction of oil and gas blocks under New Exploration Licensing Policy (NELP).

Separately at a session of the India-Russia Forum on Trade and Investment, the Minister of Commerce and Industry, Mr Kamal Nath, emphasised that the level of economic engagement between the two countries in terms of trade and investment relations should increase.

Protocol signed

A protocol was signed by Mr Kamal Nath and Ms Elvira S. Nabiullina, Minister of Economic Development and Trade of the Russian Federation, to resolve to cooperate in several spheres of mutual interest.

It was decided by both the sides that enhancement of bilateral investment and trade cooperation is one of the important steps to advance qualitatively trade and economic relations as well as widen strategic partnership and cooperation.

Both sides also agreed on early commercialisation of new and innovative technologies as one of the prospective spheres of cooperation.

The next meeting of the forum would be held in 2009 or earlier in Russia on a mutually agreed date.

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