NEW DELHI : ONGC Videsh Ltd, the abroad arm of state-owned Oil and Pure Fuel Company (ONGC), has submitted an utility to Russian authorities to retake a 20% stake within the Sakhalin-1 oil and gasoline fields within the far east area of the nation, the corporate stated.
Russian President Vladimir Putin final month disbanded Exxon Neftegaz – a regional subsidiary of US tremendous main ExxonMobil – as operator of the Sakhalin-1 and transferred the mission and all of its property and gear to a brand new operator.
The opposite former overseas shareholders within the mission – Japan’s Sodeco consortium and ONGC Videsh – have to use to the Russian authorities to regain their shareholdings within the mission.
“ONGC Videsh Board in its assembly held on October 18, 2022, has accepted submission of its consent to assert the corporate’s proper in Sakhalin-1,” ONGC stated in its notes to a inventory change submitting on July-September quarter earnings.
It “expects retention of its curiosity within the mission and isn’t anticipating any main affect on its rights and obligations on account of this transition,” it stated.
Moscow has assigned a 20% stake in Sakhalin-1 and operatorship to a regional subsidiary of Russian oil producer Rosneft. Russia has requested overseas shareholders within the mission – ExxonMobil, Sodeco and ONGC Videsh – to use to reinstate their shareholdings within the mission earlier than mid-November.
Whereas the Sodeco consortium has determined to retain its stake, ExxonMobil confirmed that it had totally exited Sakhalin-1 after the confiscation of property and has no plans to function the mission.
Manufacturing from Sakhalin-1 stopped in Could after Exxon Neftegaz declared drive majeure on the mission in response to worldwide sanctions imposed on Russia following its invasion of Ukraine in February.
“On October 7, 2022, the Russian President issued a decree and consequently the Authorities of the Russian Federation notified on October 12, 2022, its Decision that the rights and obligations of the consortium beneath the Sakhalin-1 manufacturing sharing settlement (PSA) shall be transferred to a brand new firm, Sakhalin-1 Restricted Legal responsibility Firm,” ONGC stated.
Sakhalin-1 was producing 2,20,000 barrels per day of oil earlier than the Ukraine conflict. Of this OVL’s share was 44,000 bpd or 2.2 million tonnes every year. Nonetheless, western sanctions following the Ukraine conflict led to constraints in evacuating oil.
At an investor name, firm officers stated Sakhalin manufacturing has resumed beneath the brand new possession of Rosneft and ONGC expects to get 1.5 million tonnes every year in FY23.
Sakhalin-1 is a big oil and gasoline discipline in far-east offshore Russia, unfold over 1,140 sq. kilometres, which incorporates three offshore fields specifically Chayvo, Odoptu and ArkutunDagi. OVL acquired a 20% stake within the mission in July 2001.
Exxon Neftegas Restricted (ENL) and Sodeco held a 30% stake every. The remaining 20% is held by Russia’s Rosneft by means of its subsidiaries SMNG (11.5%) and RN Astra (8.5%).
Nearly all of Sakhalin-1’s oil manufacturing is shipped to worldwide markets by way of the De-Kastri terminal, situated within the Khabarovsk area on the Russian mainland, which is linked to Sakhalin-1 by way of a devoted pipeline.
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