India will receive its first shipment of oil from Russia's Sakhalin-I fields, where it is investing more than $2.7-billion, from the second quarter of 2006.
The Sakhalin-I fields, where ONGC Videsh Ltd has 20 per cent stake, began producing oil and gas earlier this month.
"Currently, the limited production from the fields is being sold locally (in Russia). From Q2 2006, we expect 50,000 barrels a day (bpd) of output and we plan to ship our share of production to India," OVL managing director R S Butola told reporters in New Delhi.
Sakhalin crude, which is low in sulphur, can either be shipped directly to India or be swapped with Gulf oil destined for Japan or Korea.
OVL had given loans to Rosneft to fund the Russian company's 20 per cent stake in the project as well as paying for its own 20 per cent share of development costs.
"Our share of 20 per cent entitles us for 50,000 bpd of crude oil from peak output of 250,000 bpd. But since we have also financed Rosneft's share, we would get their share of oil as well till the loan is repaid," he said.
India, which imported 76 per cent of its crude oil requirement last year, is seeking stakes in overseas fields such as Sakhalin to feed the nation's 7 per cent annual economic growth.
Butola said the field was initially producing 23,000 bpd of oil and about 58-59 million standard cubic feet of gas per day. Oil production would rise to 50,000 bpd by April 2006 and hit the peak level of 250,000 barrels per day by 2006 end.
Gas production will rise to 200 million standard cubic feet per day by next year, he said.