ONGC Reported to Be Mulling Arctic Join

ONGC Videsh Ltd. (OVL), a subsidiary of Indian multinational ONGC, is reported to be keen to take a stake in one of Rosneft's three massive Arctic shelf projects in Russia.

Reported by various Indian news sites and outlets, including the Press Trust of Russia and the Economic Times, OVL is said to have written to Rosneft at the beginning of May to request entry into three joint ventures Rosneft has formed in the past year. These joint ventures are made with Statoil, to explore for gas in Russia and Norway; made with ExxonMobil to explore for oil and gas in the Black Sea and Arctic Ocean; and with Eni to explore for oil and gas on three Russian offshore blocks.

If granted, OVL would take part of a stake in Rosneft's interest in any of the three joint ventures, leaving Statoil, Eni and ExxonMobil with their existing respective stakes.

Alternatively, the Economic Times reports an unnamed source as saying, OVL is interested in taking a stake in any future Rosneft Arctic projects. The source said the company would be happy to take a smaller stake than Eni, Statoil or ExxonMobil in any future joint ventures Rosneft is planning due to its inexperience in the Arctic.

At the time of writing, neither Rosneft nor ONGC, nor OVL, had made any official comments on the reports.