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    India's ONGC eyes more Russian energy assets: Press

Summary

The Indian state-run ONGC is eyeing Russian oil and gas assets including Salym, Sakhalin-I and Sakhalin-II projects.

by: Shardul Sharma

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India's ONGC eyes more Russian energy assets: Press

Indian state-run oil and gas company ONGC is looking to place more bids for stakes in multiple Russian oil and gas fields, Economic Times reported on May 19. The business daily said that ONGC's bid for a 50% stake vacated by Shell in Salym fields in Siberia was not accepted.

ONGC's offer didn't involve any immediate cash payment to Shell. Instead, the Indian firm had proposed future oil revenues to Shell from the Salym fields, sources told the newspaper. Salym produces 17,000 barrels/day and 274mn m3/day of associated gas.

"The war will not last forever, nor will the sanctions. We must move to secure our energy supplies," the sources told the newspaper. "We understand the risk and we are willing to take the risk."

ONGC is also evaluating the option to bid for Shell's 27.5% interest in the Sakhalin-II oil and gas project and ExxonMobil's 30% stake in the Sakhalin-I project, looking to acquire energy assets cheap as western oil companies exit Russia in the wake of the Ukraine invasion, Economic Times added. ONGC already owns a 20% stake in Sakhalin-I. 

Indian state-run oil companies such as ONGC, Bharat Petroleum, Indian Oil and Oil India are also discussing internally whether to buy BP’s 20% stake in Russian energy giant Rosneft, the report added