ONGC Videsh Ltd, the overseas arm of the Oil and Natural Gas Corporation, has proposed to buy the entire gas production from Sakhalin-I field in Russia and import the same in the form of LNG to India.
"The gas production potential of Sakhalin-I is 8 billion cubic meters per annum," Minister of State for Petroleum and Natural Gas Dinsha Patel said in a written reply to a question in Rajya Sabha.
Exploitation of gas reserves from Sakhalin-I field, where OVL has 20 per cent stake, is planned in Phase-2 development, which is likely to commence in 2013.
The operator has initiated negotiation with the prospective buyers. "OVL has expressed its desire to buy the entire Sakhalin-I gas production and import the same in form of LNG to India," he said.
With the installation of Interim Production Facility in Sakhalin-I project, the development of which is in progress, production of crude oil and natural gas has started on a limited scale from October 2005, for sale to domestic buyers.
Full production is expected to commence in early 2007. Patel had last week informed the Lok Sabha that OVL is planning to bring the first two cargoes of crude oil each having a capacity of approx 700,000 barrels from Sakhalin-I project in Russia into India in October and December, 2006.
OVL has 20 per cent stake in the ExxonMobil-operated Sakhalin-I project in Far East Russia.
The company would auction the crude to Indian refiners. "The details of infrastructure viz, jetties, SBM and pipelines available with ONGC at Jawahardweep and offshore to facilitate auctioning of crude by ONGC are being assessed," he had stated.
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