Economics

16:27, 14.02.2008 | World

Oil and Natural Gas Corporation (ONGC) is keen on taking a stake in Russia's Sakhalin-III and other oil and gas projects in eastern Siberia while Russia's Rosneft is considering investing in the Indian PSU's LNG plant at Mangalore.

"India hopes to acquire oil and gas fields in Siberia ... Such participation is quite realistic," said Mr Sergey Mikhaylov, an official in Russia's Ministry of Industry and Energy, at a business meeting here on Wednesday.

ONGC Videsh Ltd, the overseas investment arm of state-run ONGC, has proposed to team up with Rosneft to bid for the giant Sakhalin-III Project in Far East Russia. OVL currently has 20 per cent stake in Exxon Mobil operated Sakhalin-I project that produce s 12 million tons of oil a year. OVL was also eyeing oilfields in East Siberia, which is estimated to hold some 20 billion barrels of oil reserves. It is also looking at participating in Russian continental shelf that may contain oil and gas in four mil lion sq km of its total area of 6.5 million sq km. Also on its radar are the giant gas field Shtokman and Prirazlomneye oilfield, which hold recoverable reserves of more than 83 million tons.

Other areas of interest for OVL include exploration blocks in Timan-Pechora area and Sakhalin-3 and 6 projects.

"The Russian government is studying very closely ONGC's proposal on Sakhalin-3," said Mr Mikhaylov.


- Business Line