ONGC Videsh Ltd has appealed to Russian authorities to retake a 20 percent stake in the Sakhalin-1 oil and gas fields.
November 18, 2022
ONGC Videsh Ltd. (OVL), the overseas subdivision of Oil and Natural Gas Corporation (ONGC), has put forth an official appeal to Russian authorities to retake a 20 percent stake in the Sakhalin-1 oil and gas fields.
As published in news reports – Russian President Vladimir Putin disbanded Exxon Neftegaz – a regional subsidiary of US super major ExxonMobil – as operator of the Sakhalin-1 and transferred the project and all of its assets and equipment to a new operator.
“ONGC Videsh Board in its meeting held on October 18, 2022, has approved submission of its consent to claim the company’s right in Sakhalin-1,” ONGC said in its notes to a stock exchange filing on July-September quarter earnings.
Moscow has assigned a 20 percent stake in Sakhalin-1 and operatorship to a regional subsidiary of Russian oil producer Rosneft. Russia has asked foreign shareholders in the project – ExxonMobil, Sodeco, and ONGC Videsh – to apply to reinstate their shareholdings in the project before mid-November.
Sakhalin-1 is a large oil and gas field in far-east offshore Russia, spread over 1,140 sq km, which includes three offshore fields namely Chayvo, Odoptu, and ArkutunDagi. OVL acquired a 20 percent stake in the project in July 2001.