Oil and Natural Gas Corporation (ONGC) is evaluating the acquisition of stake in Russia’s huge Vostok Oil undertaking, an organization official mentioned on Thursday, as the 2 nations search to deepen their financial ties within the vitality sector.
Vostok is one in all Russia’s greatest oil undertaking comparable in dimension with the exploration of West Siberia within the Seventies or the US Bakken oil province over the previous decade.
“We are still in the evaluation stage. We are looking at it (Vostok Oil), it is a very large complex project,” A Okay Gupta, managing director of ONGC Videsh Ld, the abroad funding arm of ONGC, instructed Reuters.
He didn’t give any additional particulars on the deal.
Russian oil main Rosneft is in talks with a number of gamers about participation in Vostok, which in keeping with preliminary estimates may require the funding of greater than 10 trillion roubles ($137 billion).
Global commodities dealer Trafigura has a ten per cent stake in Vostok Oil and a consortium of merchants Vitol and Mercantile & Maritime have proven curiosity in taking a 5 per cent stake within the undertaking.
Petroleum Minister Hardeep Singh Puri, who’s in Russia for an financial discussion board, met Russian Energy Minister Nikolai Shulginov and Rosneft chief Igor Sechin. The discussion board within the Russian Pacific port of Vladivostok was additionally attended by Russian President Vladimir Putin.
“Look forward to further strengthening strategic cooperation across the entire value chain of the energy sector with Russia,” Mr Puri mentioned on Twitter after assembly Mr Shulginov.
Mr Gupta mentioned Russia was a “preferred destination” for vitality funding by India.
ONGC Videsh owns 26 per cent stake in Russia’s Vankor discipline and a 20 per cent stake in Sakhalin-1 undertaking. In 2009, it acquired Imperial Energy, an unbiased exploration and manufacturing firm in Russia.
Russia goals to start delivery oil from the deliberate Vostok undertaking in 2024 by way of the Northern Sea Route, an alternative choice to the Suez Canal which shortens travels to markets in Asia.
Vostok Oil consists of the Vankor cluster, the West-Irkinsky space, the Payakha group of fields and the East-Taimyr cluster.