+
ONGC Seeks Russian Crude Share Amid Shipping Hurdles
OIL & GAS

ONGC Seeks Russian Crude Share Amid Shipping Hurdles

The head of ONGC's overseas investment arm, ONGC Videsh, revealed that the state-run Oil and Natural Gas Corp has aspirations to eventually secure a portion of crude oil from a Russian project in which it holds partial ownership. However, due to the current challenges in shipping Russian oil, the company is prepared to exercise patience. ONGC Videsh CEO Rajarshi Gupta explained that Russian oil transport is currently problematic, citing the restrictions and price constraints associated with it. As a result, ONGC Videsh is open to letting others manage these complexities temporarily while they work on resolving the situation.

Last year, Russian President Vladimir Putin removed Exxon Mobil's subsidiary as the operator of the Sakhalin-1 oil and gas project in Russia's Far East and transferred control to a new operator. ONGC Videsh has since reclaimed its 20% stake in the project and is engaged in discussions with Russian government officials and project shareholders to recommence oil extraction under a production-sharing agreement.

Gupta expressed a preference for being able to extract and market their own oil, but acknowledged the current difficulties associated with Russian oil, including sanctions related to the Ukraine conflict, insurance challenges, and price caps. These factors have made it challenging to transport Russian oil.

The discussions with Russian stakeholders and other project participants are expected to take approximately six months to conclude. The Sakhalin-1 project currently produces around 200,000 barrels of oil per day and involves other shareholders such as Japan's Sodeco and Russia's Rosneft. Despite ONGC's existing investments in three Russian projects, the company is not actively seeking further investments in Russia at this time. Gupta noted that the market conditions are uncertain due to ongoing developments in the Russia-Ukraine conflict.

ONGC is a significant contributor to India's oil and gas production, accounting for approximately two-thirds of the country's oil production and 58% of its gas output. India largely relies on imports for its oil and gas needs. Recent government data revealed that India's crude oil imports have declined for the third consecutive month in August, primarily due to maintenance activities and reduced shipments from Russia, the world's third-largest oil importer.

See also:
ONGC invests Rs 150 bn in OPaL, GAIL to take control
ONGC commits up to Rs 2 Tn investment for emission targets

The head of ONGC's overseas investment arm, ONGC Videsh, revealed that the state-run Oil and Natural Gas Corp has aspirations to eventually secure a portion of crude oil from a Russian project in which it holds partial ownership. However, due to the current challenges in shipping Russian oil, the company is prepared to exercise patience. ONGC Videsh CEO Rajarshi Gupta explained that Russian oil transport is currently problematic, citing the restrictions and price constraints associated with it. As a result, ONGC Videsh is open to letting others manage these complexities temporarily while they work on resolving the situation. Last year, Russian President Vladimir Putin removed Exxon Mobil's subsidiary as the operator of the Sakhalin-1 oil and gas project in Russia's Far East and transferred control to a new operator. ONGC Videsh has since reclaimed its 20% stake in the project and is engaged in discussions with Russian government officials and project shareholders to recommence oil extraction under a production-sharing agreement. Gupta expressed a preference for being able to extract and market their own oil, but acknowledged the current difficulties associated with Russian oil, including sanctions related to the Ukraine conflict, insurance challenges, and price caps. These factors have made it challenging to transport Russian oil. The discussions with Russian stakeholders and other project participants are expected to take approximately six months to conclude. The Sakhalin-1 project currently produces around 200,000 barrels of oil per day and involves other shareholders such as Japan's Sodeco and Russia's Rosneft. Despite ONGC's existing investments in three Russian projects, the company is not actively seeking further investments in Russia at this time. Gupta noted that the market conditions are uncertain due to ongoing developments in the Russia-Ukraine conflict. ONGC is a significant contributor to India's oil and gas production, accounting for approximately two-thirds of the country's oil production and 58% of its gas output. India largely relies on imports for its oil and gas needs. Recent government data revealed that India's crude oil imports have declined for the third consecutive month in August, primarily due to maintenance activities and reduced shipments from Russia, the world's third-largest oil importer. See also: ONGC invests Rs 150 bn in OPaL, GAIL to take controlONGC commits up to Rs 2 Tn investment for emission targets

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code