18 Oct 2022 14:38

India's ONGC intends to remain in Sakhalin-1 after change of operator

MOSCOW. Oct 18 (Interfax) - India's Oil and Natural Gas Corp. (ONGC) plans to take a stake in Sakhalin-1 LLC, the new operator of the Sakhalin-1 project under the production sharing agreement, The Times of India wrote, citing several sources.

The company previously held a 20% stake in the PSA project through its subsidiary ONGC Videsh.

"ONGC Videsh will defend its stake in the project," one source said.

Sakhalin-1 accounted for about a quarter of the company's 124.7 million tons of proven reserves at the end of March 2022.

ONGC would consider buying an additional stake in the project if that makes "commercial sense," sources said.

Japan's SODECO, another Sakhalin 1 participant, has not yet made a decision regarding its further participation in the project.

"We are gathering information about the decree and plan to decide by November 12 whether we will apply for a stake in the new venture after consulting with stakeholders, including the Japanese Ministry of Industry," a SODECO spokesman said Monday.