India's OVL, Partners May Revive Bid for Yamal LNG

After almost a year’s lull, ONGC Videsh Limited (OVL), the overseas arm of the state-owned Oil and Natural Gas Corporation (ONGC), will team up with Petronet LNG and Indian Oil Corporation (IOC) to bid for up to 20 per cent stake in Russia’s Novatek LNG project in the Yamal Peninsula.

OAO Novatek is looking for international partners to develop the Yamal LNG project and share implementation costs, Business Standard reported.

 “We are in initial discussions with Novatek. Along with our partners we are looking at either LNG offtake or participation in the development of the project. We are interested in bringing the LNG to India,” a senior OVL official was quoted as saying by Business Stnadard. “Tax concession and support from the respective governments will be crucial for this deal,” the official added.

Novatek in a strategy presentation said the planned capital expenditures for Yamal LNG field development and LNG facilities would be around $20 billion.

Novatek holds 80 per cent stake in OAO Yamal LNG and its strategic partner Total holds 20 per cent.