The Hindu : Business : OVL looks for oil fields in Siberia

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Friday, Feb 15, 2008
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OVL looks for oil fields in Siberia

Special Correspondent

NEW DELHI: Seeking to expand further the relationship and also its presence in the region, Oil and Natural Gas Corporation Videsh Limited (OVL) has drawn up plans to go in for acquisition of oil and gas assets not only in Sakhalin-III but also in oil and gas projects in Eastern Siberia.

Reliable sources said here that OVL had proposed to the visiting Russian delegation, that descended in New Delhi along with the Russian Prime Minister, Victor Zubkov, that it was interested in joining hands with Russian company Rosneft to bid for big projects like Sakhalin III in Far East Russia.

“India is hoping to acquire oil and gas fields in Siberia. There are positive indications from the Russian side and we expect results on this very soon,” a senior official said. OVL at present has 20 per cent stake in Exxon Mobil operated Sakhalin-I project that produces 12 million tonnes of oil a year.

Sources said 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 million sq km of its total area of 6.5 million sq km. The giant gas field, Shtokman and Prirazlomneye oilfield, which hold recoverable reserves of more than 83 million tonnes are also under its scanner.

Sources said that Moscow planned to develop 12 new oil fields in the near future in the East and was holding parleys with investors. On its part, Rosneft, Russia’s largest oil firm, was mulling on investing in the liquefied natural gas (LNG) import terminal being built by ONGC at Mangalore in Karnataka.

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