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ONGC retains 20% stake in Russia’s Sakhalin-1

The company has received approval from Russia to retain 20 percent stake in the project, said Managing Director, ONGC Videsh.

November 29, 2022 / 06:21 PM IST
(Representative image)

(Representative image)

Oil and Natural Gas Corporation (ONGC) has received approval from Russia to retain a 20 percent stake in the Sakhalin-1 oil and gas fields in the far east region of the country, said Rajarshi Gupta, Managing Director of ONGC Videsh.

“We have received the approval and are back with a 20 percent stake in Russia’s Shakalin-1,” said Gupta.

Last month, Russia had asked foreign shareholders in the project to apply for regaining their shares after Exxon Neftegaz, the Russian unit of Exxon Mobil Corp, declared force majeure on the project. The US giant, which had a 30 percent stake in Sakhalin-1, said it would not invest in the project to comply with sanctions imposed on Moscow.

Russian President Vladimir Putin signed a decree to set up a new operator for the Sakhalin-1 oil and gas project. According to the decree, the Russian company would own the investors' rights, including the operator's rights of Exxon Neftegaz.