India’s Oil and Natural Gas Corp (ONGC) has applied to retain a stake in the new Russian operator of the Sakhalin-1 oil and gas project in the Far East, reported Reuters, citing a person familiar with the development.
Following the exit of previous operator ExxonMobil from the oil and gas project, Russia has established a new entity that is managed by a subsidiary of Russian entity Rosneft .
The Russian government ordered the new state-run company to decide the participation of foreign shareholders in the Sakhalin-1 project.
Through its overseas investment unit ONGC Videsh , ONGC owns a 20% stake in the project.
Through Sakhalinmorneftegaz-Shelf and R N Astra, Russian oil major Rosneft owns the remaining 20% interest.
SODECO was urged by the Japanese Government to retain its stake in the Russian project to help ensure the country’s energy security.
According to industry sources, the new Russian entity is planning to restore oil production levels from the Sakhalin project in the near future.