ONGC plans to invest USD 8 billion in Russian oil assets. CNBC-TV18 reports that politics may hold the key to these deals.
ONGC received its first shipment of crude oil from Russia's Sakhalin-I oilfield. And, it is planning to bring its second cargo of similar size of 7 lakh barrels by end-December. ONGC holds a 20% stake in this oilfield and is now planning to invest more. It is negotiating with Lukeoil company for a 10% stake and a 25% stake in a Rosneft-owned oilfield.
"Next year, we are looking at various opportunities. And when we are negotiating opportunities, it is not appropriate to share," said R S Sharma, Chairman, ONGC.
Money will not be a problem for ONGC. But, politics might be. India is now politically closer to the United States; while five years ago, it was Russia's ally. And, ONGC had part-financed Rosneft's stake in this project, which helped ONGC to grab a pie of the oilfield.
"Russia being the largest producer of gas and having the largest gas reserve is definitely important to us. We believe that Russia would be playing a major role in balancing the energy axis," said Petroleum Minister, Murli Deora.
ONGC will now have to compete with global oil majors. It has already lost out to Chinese majors in other takeover bids. The minister along with Petro Secretary was in Russia last month to boost ONGC's chances. But, how much of a shove it was, only its assets will reflect.
"Next year, we are looking at various opportunities. And when we are negotiating opportunities, it is not appropriate to share," said R S Sharma, Chairman, ONGC.
