ONGC Videsh to bid for Sakhalin-3 stake

Dec. 8, 2006
India wants to obtain a stake in the Sakhalin-3 project in its strategy to invest heavily in Russian oil and gas work, said R.S. Butola, managing director of ONGC Videsh Ltd. (OVL).

Shirish Nadkarni
OGJ Correspondent

MUMBAI, Dec. 8 -- India wants to obtain a stake in the Sakhalin-3 project in its strategy to invest heavily in Russian oil and gas work, said R.S. Butola, managing director of ONGC Videsh Ltd. (OVL).

OVL, the overseas subsidiary of state-owned Oil & Natural Gas Corp., initiated discussions with OAO Rosneft and OAO Gazprom for compiling a joint bid to buy into Sakhalin-3.

Butola's comments came during a formal function to receive the first consignment of crude from Russia's Sakhalin-1 project, in which OVL holds 20% interest.

Russian oil tanker MK Viktortitov, an OVL charter, delivered 92,055 tonnes (672,000 bbl) of Sokol crude. A second shipment is expected by Dec. 31.

ExxonMobil Corp. holds 30% interest in Sakhalin-1, Japan's Sakhalin Oil & Gas Development Co. holds 30%, and Rosneft and OVL each hold 20%.