Russia invites ONGC to buy stake in Magadan 2 field

NEW DELHI Mon Oct 15, 2012 12:10am IST

An engineer of Oil and Natural Gas Corp (ONGC) works inside the Kalol oil field in Gujarat September 12, 2009. REUTERS/Amit Dave/Files

An engineer of Oil and Natural Gas Corp (ONGC) works inside the Kalol oil field in Gujarat September 12, 2009.

Credit: Reuters/Amit Dave/Files

Related Topics

Stocks

   

NEW DELHI (Reuters) - Russia has invited Oil and Natural Gas Corp Ltd (ONGC) to consider buying a stake in the Magadan 2 field operated by Rosneft (ROSN.MM) in the northern part of the Sea of Okhotsk, its deputy energy minister said on Sunday.

India, which imports about 80 percent of its oil needs, is on the hunt for supplies to power its near-$2-trillion economy, while Russia is keen to tap its vast offshore reserves.

"We have suggested that ONGC look at (investing in) Magadan 2," Russian Energy Deputy Minister Yury Sentyurin told reporters on the sidelines of energy conference Petrotech.

He said he had made the proposal to Indian oil ministry officials at the India Russia Joint Working Group meeting on Saturday.

The New Delhi government has told state firms to secure energy assets overseas as the country's own output is well below demand in an economy expected to grow 6.5 percent this year, and already suffering hefty power shortfalls.

Sentyurin added that the size of any possible stake was up for negotiation.

D. K. Sarraf, Managing Director of ONGC Videsh Ltd, the overseas investment arm of ONGC, confirmed that the company has viewed data relating to the field.

Russia granted exploration licenses for five areas in the Sea of Okhotsk - Magadan-1, -2 and -3, Lisyansky and Kashevarovsky - to Rosneft without bidding at the end of last year.

Recoverable resources in the area are estimated at 2.8 billion tonnes of oil equivalent, according to Rosneft's annual report.

Rosneft recently teamed up with Norway's Statoil (STL.OL) in four new joint ventures, including exploring the Magadan 1, Lisyansky and Kashevarovsky license blocks, with prospective recoverable resources at more than 1.4 billion tonnes.

ONGC already has a stake in Russia's Sakhalin-1 oil and gas project in the Pacific, and in 2008 it bought the Imperial Energy oil company in western Siberia.

(Editing by Louise Heavens)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Barack Obama in India

Reuters Showcase

Coal Mining

Coal Mining

India to open coal to commercial mining firms soon, minister says  Full Article 

RBI Loan Rules

RBI Loan Rules

RBI relaxes overseas loan recast rules   Full Article 

E-commerce Firms

E-commerce Firms

Amazon, e-commerce rivals fuel commercial property boom in India  Full Article 

Growth Forecasts

Growth Forecasts

Indian economic growth forecasts pegged back, despite rate cuts: Reuters Poll.  Full Article 

Uber is Back

Uber is Back

Uber back in Delhi; govt says must await approval.  Full Article 

Markets at Record

Markets at Record

Sensex rises to record after ECB stimulus programme.  Full Article 

Pharma Sector

Pharma Sector

Ipca Labs hit by FDA ban on plant for standard violations.  Full Article | Related Story 

Forex Reserves

Forex Reserves

India FX reserves at record high as RBI fortifies defences  Full Article 

QE for Euro Zone

QE for Euro Zone

ECB launches 1 trillion euro rescue plan to revive euro economy.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage