ONGC Videsh to bid for Sakhalin-3 stake

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).

Dec. 8, 2006

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%.