The international branch of ONGC is in talks to buy a share in Russia's Vostok, Arctic LNG-2 project.

 

Image By: Frauke Feind from Pixabay

According to Oil Minister Hardeep Singh Puri, India's leading energy companies, including ONGC Videsh Ltd, are exploring obtaining a stake in Russia's enormous Vostok oil project as well as a proposed liquefied gas project Arctic LNG-2. OVL, the state-owned Oil and Natural Gas Corp's (ONGC) foreign arm, is considering taking a minority stake in the Vostok Oil project, which has combined estimated premium crude resources of over 6 billion tonnes (44 billion barrels).

It is in talks with Petronet LNG Ltd to purchase a 9.9% share from Novatek.

Puri, who was in Russia for the Eastern Economic Forum in Vladivostok, told reporters in Moscow before departing for New Delhi, "A number of new possible projects were discussed Vostok Oil, Artic LNG-2 (and) petrochemicals."

He added these investments will contribute to further development and deepening of relations between Russia and India, posting a short clip of the press engagement on his Twitter account.

In a Twitter message, he stated, "During my contact with members of the fourth estate in Moscow, I informed them on my fruitful & profitable visit to Russia, a crucial partner for our energy security."

He said that the business delegation he headed met with all of the major economic and energy sector participants.

Almost all major Russian businesses, including Rosneft, Gazprom Neft, and Novatek, are interested in creating new projects with Indian oil and gas corporations, according to Russian Energy Minister Nikolay Shulginov.

At the Russian-Indian business discussion, Shulginov said, "We see opportunities for energy cooperation in many fields."

Puri claims that Indian oil corporations have already invested almost USD 16 billion in Russia's oil and gas sector, including projects like Sakhalin-1, Vankor, and Taas-Yuryakh, whereas Russia has invested the same amount in India.

The minister also met with Rosneft CEO Igor Sechin during his 5-day tour, who gave a presentation on the Vostok Oil megaproject, which connects some of Rosneft's massive resources with the Northern Sea Route.

During his visit, he also met Leonid Mikhelson, the CEO of Novatek.

According to Rosneft, oil production in the cluster could reach 115 million tonnes, or roughly 2.3 million barrels per day, by 2033.

The USD 11 billion Arctic project is 60% owned by Novatek, Russia's largest LNG producer. TotalEnergies of France and a Japanese consortium each own a 10% share in the project. China's CNPC and Cnooc Ltd each own 10% of the company.

The first train is expected to commence in 2023, with the Arctic LNG 2 plant reaching its full nameplate capacity of 19.8 million tonnes in 2025, according to the partners.

Puri wrote on Twitter after his meeting with Rosneft CEO Igor Sechin, "We had extremely constructive conversations on further deepening our strategic collaboration with Russia in the energy sector."

One of the most promising oil production prospects in the world is Vostok Oil, which is located on the far northern Taymyr Peninsula. It consists of 52 licence zones with a total oil resource base of over 6 billion tonnes.

(Source: Business Today)