India�s ONGC considering 20% stake in Sakhalin-1 project

ONGC Videsh Ltd. (OVL), a foreign arm of Indian state oil company Oil & Natural Gas Corp., has announced plans to acquire a 20% stake in the Russian Sakhalin-1 oil field project. It has already hired international merchant bankers JP Morgan to study the field and advise it about the proposed investment.


NEW DELHI�ONGC Videsh Ltd. (OVL), a foreign arm of Indian state oil company Oil & Natural Gas Corp. (ONGC), has announced plans to acquire a 20% stake in the Russian Sakhalin-1 oil field project. It has already hired international merchant bankers JP Morgan to study the field and advise it about the proposed investment.

At present, ExxonMobil Corp. and Sakhalin Oil Development Cooperation Co. Ltd., a group of 18 Japanese companies, each hold a 30% stake in the project; Russian state firm Rosneft holds 17%, and Rosneft's Sakhalinmorneftegaz subsidiary owns 23%. The Russian companies have said they may sell part of their stakes to pay off Rosneft's debt to the consortium (OGJ Online, May 24, 2000).

OVL also has plans to take equity in various other Russian fields and is likely to invest as much as $300 million in Ugut-Kinyamin field. The firm is studying the viability of the West Siberian field for possible participation.

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