Friday, February 23, 2024

ONGC plans to retain stake in Russia’s energy project

India’s Oil and Natural Gas Corporation (ONGC) will notify the Russian government of its plans to retain its stake in the new entity that will manage the Sakhalin-1 oil and gas project in the Far East, the company’s chairman and managing director, Rajesh Kumar Srivastava, told the TASS news agency on Wednesday.

When asked about plans to inform Russia’s Cabinet of Ministers of ONGC’s participation in the project, he said that “it will definitely be done,” stressing the importance of joint projects with Russia.

India holds a 20% stake in the project through its overseas investment arm ONGC Videsh, along with Russia’s Rosneft (20%) and Japan’s Sodeco (30%).

Media reports had previously indicated that ONGC was seeking to retain its stake in the Russian operator of Sakhalin-1 and was even considering expanding it.

In October, Russian President Vladimir Putin disbanded Exxon Neftegaz, a regional subsidiary of US energy major ExxonMobil, as operator of the Sakhalin-1 and transferred the project and all of its assets and equipment to a new operator. The new Russian entity, managed by Rosneft subsidiary Sakhalinmorneftegaz-Shelf, will own investors’ rights in the project.

ExxonMobil owned a 30% stake before announcing its exit from the project in October.

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