Friday, July 8, 2022

Russia may take over the oil field, and ONGC Co. wants a bigger role

ONGC co eyes bigger role in oil field that Russia may take over

 NEW DELHI: Amid discusses Moscow considering nationalizing Sakhalin-I project, state-run ONGC Videsh Ltd (OVL) is sending extra labor supply to impart to Kremlin-moved Rosneft a greater job in working the oil field following ExxonMobil's withdrawal.A Reuters report from Moscow on Thursday cited Pavel Zavalny, who heads the energy board in the Lower House of Russia's parliament, as expressing nationalization of Sakhalin-I was an "self-evident" step after the takeover of the Sakhalin-II undertaking after Shell's exit.

The report, in any case, additionally cited Kremlin representative Dmitry Peskov as saying that no choice had been taken on Sakhalin-I.

OVL and Rosneft have 20% stake each in Sakhalin-I, situated in the Russian Far East. ExxonMobil and SODECO, a consortium of Japanese firms, hold 30% each. Yield has declined to 10,000 barrels each day (bpd) from 220,000 bpd.

After ExxonMobil said on March 1 it will cease tasks because of Russia's tactical activity in Ukraine and co-ordinate a progressive withdrawal with the accomplices, OVL proposed to send more staff with reasonable skill to make up for the shortfall to some degree. Individuals in the loop said Rosneft has open to the proposition and examining the rundown of work force recommended by OVL.

Individuals refered to above said in the event that the public authority chooses to nationalize, as found in the event of Sakhalin-II, the Moscow will move the undertaking to another organization and ask the accomplices, regardless of regardless of whether they need to remain on, to get involved with the new element. The people who need to exit can then sell their stake in the new organization. This course of action will forestall loss of significant worth for Russia or different financial backers because of trouble deal by the leaving accomplice.

"OVL never said it needs to exit and has a well established relationship with Rosneft. OVL had financed Rosneft's stake in the task at first. So one can accept OVL's advantage will be protected (in the event of nationalization)," one individual said.

The Russian government has nationalized the Sakhalin-II oil and gas project after Shell reported its exit and needed to sell its stake.

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