Sakhalin-I gets rolling today

ONGC Videsh Ltd (OVL) has 20 per cent stake in the Sakhalin-I fields operated by US major Exxonmobil.

Meanwhile, Russia also evinced interest on OVL partnering with its state-owned firms for oil and gas exploration in its territory and third countries, even as Moscow termed New Delhi as its natural ally.

“We have an excellent relationship (with India). We have cooperation not only in the oil and gas sector, but also in other spheres like defence. We are natural allies,” Russia’s Minister of Industry and Energy Viktor Borisovich Khristenko said today.

“From October 1, the fields will start production of about 23,000 barrels per day (bpd). This will go up to 50,000 bpd in over a month’s time,” OVL Managing Director R. S Butola said here.

Oil production from the fields will reach a peak of 25,000 bpd by December 2006 or early 2007.

OVL purchased a 20 per cent stake in the Sakhalin-I project for $1.7 billion in 2001. In November, India’s Cabinet approved $1.1 billion of additional investment in Sakhalin-I by OVL.

Butola said OVL plans to ship around 7,00,000 barrels of oil from Sakhalin-I fields to India every 70 days beginning April 2006.

This will be India’s first shipment of equity crude oil from the Russian fields. The initial oil and gas will be sold locally.

The Sakhalin-I consortium — comprising Exxon Neftegas Ltd with a share of 30 per cent, Japanese Sodeco with 30 per cent, Russian RN-Astra LLC with 8.5 per cent and Russian Sakhalin Morneftegaz-Shelf having 11.5 per cent — has already hired five ice-class tankers on long-term charter.

The tankers will be delivered next year and OVL will hire one of them for transporting its share of output of around 50,000 bpd (April-November 2006) to India.

“(These are) excellent conditions for developing partnerships,” said Khristenko, who arrived here to witness along with Indian Petroleum Minister Mani Shankar Aiyar, the maiden oil and gas production from Sakhalin-I fields tomorrow.

He said OVL’s participation in the project has been an exceptional experience for Russians and they welcomed more such ventures.

—PTI

Gazprom eager on India-Iran gas project

SAKHALIN: Russian gas giant Gazprom, the world’s largest gas firm, is keen on participating in the construction of the $7.4 billion Iran-Pakistan-India pipeline that will bring gas from the South Pars fields in Iran to the two countries.

“We are keen on participating in the Iran-India pipeline project,” Russia’s Minister of Industry and Energy Viktor Borisovich khristenko said here today. The energy giant had previously held talks with authorities in Iran and India to be involved in the consortium which will also include IOC and GAIL, to lay the 2,100-km long gas pipeline. Gazprom, Total Fina Elf of France and Malaysian Petronas are the major shareholders of Iranian South Pars field. A Gazprom delegation, headed by its Chairman Alexey Miller, is expected to visit Pakistan early October to begin talks with senior Pakistani officials for leading a consortium for the construction of the pipeline. PTI