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India's ONGC applies to retain stake in Sakhalin-1 project — Reuters

On October 7, Russian President Vladimir Putin signed a decree on the creation of a new operator of the Sakhalin-1 project

NEW DELHI, November 7. /TASS/. India's Oil and Natural Gas Corporation (ONGC) has applied to the new Russian operator of the Sakhalin-1 to retain its stake in the oil and gas project in the Far East, Reuters reported on Monday citing a person familiar with the development.

When asked whether ONGC had filed an application to retain its stake in the project, the source replied: "Yes."

Earlier, ONGC Chairman and Managing Director Rajesh Srivastava told TASS on the sidelines of the Adipec conference in Abu Dhabi that his corporation plans to notify the Russian government of its intention to retain a stake in the Sakhalin-1 project. According to him, "it will definitely be done," it is important for ONGC to participate in projects in Russia.

On October 7, Russian President Vladimir Putin signed a decree on the creation of a new operator of the Sakhalin-1 project. The Sakhalin-1 company registered in Yuzhno-Sakhalinsk became the new operator.

The Russian government appointed a subsidiary of Rosneft, Sakhalinmorneftegaz-shelf, as the managing company of the new operator. Foreign participants in Sakhalin-1 were obliged to inform the Russian government within a month of their consent to receive a share in the new operator or refuse. The government will transfer the share in Sakhalin-1, which is not sold to a foreign participant, to a Russian legal entity within four months from the date of the decision.

The share of ONGC Videsh in the project is 20%, Exxon Neftegas (subsidiary of ExxonMobil) holds 30%, Rosneft owns 20%, Japanese Sodeco has 30%.

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