ONGC Videsh Retakes 20% Stake In Sakhalin-1 Oil And Gas Fields – Explained!

ONGC Videsh Ltd, the abroad arm of the state-owned Oil and Natural Gas Corporation (ONGC), has retaken a 20 % stake within the Sakhalin-1 oil and gasoline fields in Russia’s far jap area, it stated. an official on Monday.

ONGC Videsh retakes 20% stake in Sakhalin-1 oil and gasoline fields

Russian President Vladimir Putin dissolved Exxon Neftegaz, a regional subsidiary of the large US firm ExxonMobil, because the operator of Sakhalin-1 in October final 12 months and transferred the venture and all its belongings and gear to a brand new operator.

The different former international shareholders within the venture, Japan’s Sodeco consortium and ONGC Videsh, have been requested to petition the Russian authorities to reclaim their stakes within the venture.

OVL utilized for and was granted the identical fairness stake it beforehand held, the official stated.

Sakhalin-1 manufacturing was halted in April 2022 after Exxon Neftegaz declared pressure majeure on the venture in response to worldwide sanctions imposed on Russia following its invasion of Ukraine.

Moscow has assigned the Sakhalin-1 venture and operation to a regional subsidiary of Russian oil producer Rosneft. Russia then requested the international shareholders within the venture – ExxonMobil, Sodeco and ONGC Videsh – to use to reinstate their stakes within the venture earlier than mid-November.

The Sodeco consortium additionally retained its stake, however it’s unclear what is going to occur to ExxonMobil’s stake.

ExxonMobil had beforehand acknowledged that it had absolutely exited Sakhalin-1 after the asset forfeiture and has no plans to function the venture.

Sakhalin-1 produced 220,000 barrels per day of oil earlier than the Ukrainian battle. Of this, OVL’s share was 44,000 bpd or 2.2mt/y. However, Western sanctions following the Russian-Ukrainian battle led to restrictions on the evacuation of oil.

Production resumed in November and reached 140,000-150,000 bpd, the official stated, including that output is more likely to be restored to unique ranges by the tip of March.

Sakhalin-1 is a big oil and gasoline area within the far east of Russia, protecting 1,140 sq. kilometers, together with three offshore fields, particularly Chayvo, Odoptu and ArkutunDagi. OVL acquired a 20 % stake within the venture in July 2001.

Exxon Neftegas Limited (ENL) and Sodeco every held a 30 % stake. The remaining 20 % is held by Russia’s Rosneft by means of its subsidiaries SMNG (11.5 %) and RN Astra (8.5 %).

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Almost all of Sakhalin-1’s oil manufacturing is shipped to worldwide markets through the De-Kastri terminal, situated within the Khabarovsk area on the Russian mainland, which is linked to Sakhalin-1 through a devoted pipeline.

On October 7, 2022, the Russian President issued a decree, accordingly, the consortium’s rights and obligations beneath the Sakhalin-1 Production Sharing Agreement (PSA) have been transferred to a brand new firm, Sakhalin-1 Limited. Liability Company.

This new firm has OVL and Rosneft with a 20 % stake every and Sodeco with one other 30 %, the official stated, including that Russia has not determined what it should do with ExxonMobil’s 20 %.

The companions are at the moment discussing a joint operation mannequin for the fields.

[Disclaimer: This story was automatically generated by a computer program and was not created or edited by Journalpur Staff. Publisher: Journalpur.com]

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