ONGC Will Invest $5bn in its Russian Projects
India's Oil and Natural Gas Corporation (ONGC) has planned to pump in close to $5 billion in its Russian projects.
"The volume of investments we've discussed is $5 billion," company's Managing Director Narendra Kumar Verma told reporters, adding that these were upstream projects, Russia’s Sputnik reported.
Last month, Rosneft closed the $1.27 billion deal to sell 15 percent stake in Vankorneft to Indian state owned firm ONGC Videsh (OVL), the overseas arm of ONGC.
On September 4, 2015 Rosneft and OVL signed the sale and purchase agreement. The deal got Russian government's go ahead in March this year.
This acquisition has significant strategic importance to India, both in terms of augmentation of country’s energy security as well as adding a new dimension to the relationship between Rosneft and OVL.
OVL also has 20 percent participating interest in Sakhalin-1 project. Sakhalin-1 is a large oil and gas field in Far East offshore in Russia, spread over an area of approx. 1,146 sq km. Also, OVL owns Imperial Energy Corporation Plc., an independent company having its main activities in the Tomsk region of Western Siberia.
Indian oil minister Dharmendra Pradhan along with other Indian officials are currently in Russia to attend the St. Petersburg International Economic Forum (SPIEF-2016). During his visit to St Petersburg, Pradhan will be meeting his Russian counterpart Alexander Novak and CEOs of Rosneft, Gazprom, Gazpromneft, Lukoil and Novatek.
Pradhan will discuss with Russian officials ways to further enhance cooperation in oil and gas sector during.