The Hindu Business Line : India to pitch for stronger presence in Sakhalin projects

At a glance
Russia plans to invite bids in future for Sakhalin-III, IV, V and VI projects, where Indian firms are looking for participation.
Indications are that the Government would pitch for a tie-up of OVL with Russia's firms for joint bidding in Sakhalin-III projects.

New Delhi , Jan. 10

During the forthcoming visit of the Russian President, Mr Vladimir Putin, to India, a case for having stronger presence of Indian companies in Sakhalin oil and gas projects is likely to be made. Indications are that India is likely to pitch for participation of Indian companies in Sakhalin-III fields.

Speaking to Business Line, the Petroleum Minister, Mr Murli Deora, said, "India and Russia share a friendly relationship. Russia has always supported us on technological matters." The Minister indicated that he would be seeking similar support in the oil and gas sector from vast energy rich nations such as Russia.

Recently, the overseas arm of ONGC, ONGC Videsh Ltd, which has 20 per cent stake in Sakhalin-I fields, received its share of crude oil from the fields. While the first cargo of 6.72 lakh barrels of Sokol crude was received at Mangalore port on December 2, the company has recently received the second cargo of 7.05 lakh barrels.

While Sakhalin-I and II projects have already been decided, Russia plans to invite bids in future for Sakhalin-III, IV, V and VI projects, where Indian firms are looking for participation.

As regards gas from the Sakhalin-I fields, negotiations are going on between ONGC and the consortium partners of the fields that include Exxon Neftegas Ltd and a consortium of Japanese companies. The Sakhalin-I project consists of fields Chayvo, Odoptu and Arkutun-Dagi, offshore the North East coast of Sakhalin Island in the Russia Far East. Together they contain an estimated 2.3 billion barrels of oil and 17.1 trillion cubic feet of gas.

Indications are that the Government would pitch for a tie-up of OVL with Russia's firms for joint bidding in Sakhalin-III projects.