News: ONGC Videsh Ltd will bid for Russian firm
(DNA 28/04/2006) New Delhi - ONGC Videsh Ltd will on Friday bid for Russian firm Udmurtneft, which has licences to develop 26 fields in the country.
OVL has tied up with Russian oil company Itera for the purpose and will put in a bid on Friday, after the empowered group of secretaries gave its clearance.
Udmurtneft is 96.9% owned by TNK-BP, a major Russian vertically integrated oil company.
TNK-BP was formed in September 2003 after the mergers of Russian companies Tyumen Oil Co and Sidanco with the majority of British Petroleum’s Russian oil assets.
Today, TNK-BP is half-owned by British Petroleum, while the other half is owned by a group of Russian investors including the Alfa Group, Access Industries, and Renova (AAR).
The current production from the oilfields owned by Udmurtneft is about 1.15 lakh barrels per day. And oil output from ONGC’s foreign assets is expected to rise to 8.5-9 million tonne by 2010.
OVL managing director R S Butola said the Sakhalin-1 field in Russia would start exporting crude from June, and that ONGC would bring oil from this operation to India in early 2007.
ONGC holds a 20% in Sakhalin-1. “Sakhalin is currently producing 40,000-45,000 barrels per day, which is being locally consumed. Exports will begin in the second half of the year,” he said. He said crude oil from Sakhalin-1, operated by US oil major ExxonMobil, would command a premium over Brent crude due to it being of higher quality with low sulphur grade.
OVL has tied up with Russian oil company Itera for the purpose and will put in a bid on Friday, after the empowered group of secretaries gave its clearance.
Udmurtneft is 96.9% owned by TNK-BP, a major Russian vertically integrated oil company.
TNK-BP was formed in September 2003 after the mergers of Russian companies Tyumen Oil Co and Sidanco with the majority of British Petroleum’s Russian oil assets.
Today, TNK-BP is half-owned by British Petroleum, while the other half is owned by a group of Russian investors including the Alfa Group, Access Industries, and Renova (AAR).
The current production from the oilfields owned by Udmurtneft is about 1.15 lakh barrels per day. And oil output from ONGC’s foreign assets is expected to rise to 8.5-9 million tonne by 2010.
OVL managing director R S Butola said the Sakhalin-1 field in Russia would start exporting crude from June, and that ONGC would bring oil from this operation to India in early 2007.
ONGC holds a 20% in Sakhalin-1. “Sakhalin is currently producing 40,000-45,000 barrels per day, which is being locally consumed. Exports will begin in the second half of the year,” he said. He said crude oil from Sakhalin-1, operated by US oil major ExxonMobil, would command a premium over Brent crude due to it being of higher quality with low sulphur grade.
posted by InCar Group Press Room at 11:35
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