ONGC Videsh Limited (OVL) and gas producer Rosneft signed a deal on 25 May 2014 to jointly explore hydrocarbons in the offshore Arctic. Rosneft is the largest oil and gas producer of Russia.
Igor Sechin, President and Chairman of the Management Board of Rosneft and Dinesh Kumar Sarraf, Chairman of OVL and Chairman & Managing Director, Oil and Natural Gas Corp, signed a deal at the St Petersburg International Economic Forum.
ONGC Videsh and Rosneft are already partners in Sakhalin-I project in the Far East. OVL has a 20 per cent stake in the Sakhalin—1 oil and gas field in the Russian Pacific Ocean. Rosneft has a similar stake in the project, which is operated by Exxon Mobil.
The deal provides the way for the companies cooperation in subsurface surveys, exploration and appraisal activities and hydrocarbons production in Russia’s offshore Arctic. The parties will jointly consider forming a consortium led by Rosneft and involving other partners.
Rosneft had offered OVL a stake in nine offshore oil and gas blocks in the Barents Sea and one in the Black Sea.
Of the blocks offered in the Barents Sea, OVL found five were not lucrative. It will decide on the other two once Rosneft makes available data by June 2014.
Rosneft had previously offered ONGC a stake in the Magadan 2 and Magadan 3 exploration blocks in the northern part of the Sea of Okhotsk in eastern Russia, which the Indian firm is studying.
Moscow is courting India to counter moves by the US and Europe to isolate it for annexing Crimea from Ukraine.
Other Oil and Gas fields of OVL
OVL has stake in 32 oil and gas projects in 16 Countries, Viz. Vietnam (2 projects), Russia (2 projects), Sudan (2 projects), South Sudan (2 projects), Iran (1 project), Iraq (1 project), Libya (1 project), Myanmar (2 projects), Syria (2 projects), Cuba (1 project), Brazil (2 projects), Nigeria (1 project), Colombia (8 projects), Venezuela (2 projects), Kazakhstan (1 project) and Azerbaijan (2 projects).
Currently, OVL has oil and gas production from 11 Assets, namely, Russia (Sakhalin-I and Imperial Energy), Syria (Al-Furat Petroleum Co.), Vietnam (Block 06.1), Colombia (MECL), Sudan (Greater Nile Petroleum Operating Company), South Sudan (Greater Pioneer Operating Company and Sudd Petroleum Operating Company), Venezuela (San Cristobal), Brazil (BC-10) and Azerbaijan (ACG). Imperial Energy, Russia (100% PI) is one producing asset operated by OVL while five assets namely GNPOC, Sudan; GPOC and SPOC, South Sudan; MECL, Colombia and Sancristobal, Venezuela are jointly operated.
Five Assets where hydrocarbons have been discovered and are at various stages of development as on 31st March, 2013 Viz. Petro Carabobo-1 Venezuela, Block 24 Syria, Block A1 & Block A3 Myanmar and Farzad B Iran, of these, one is operated.
There are 14 Assets under various stages of Exploration out of which 8 exploration acreages are operated by OVL, 2 are jointly operated and remaining 4 are non- operated.
Where: offshore Arctic
When: 25 May 2014