Russia has promised India four to five million tonnes of crude oil annually from its Far East Siberian oil fields if it fails to accommodate ONGC Videsh Ltd in Yuganskneftegaz, the core asset of Yukos that has been acquired by Russian state-owned Rosneft.
There are reports indicating that OVL had lost out on getting an equity in Yuganskneftegaz to Chinese firm China National Petroleum Corp. CNPC offered $6 billion loan to fund the Rosneft purchase of Yuganskneftegaz in return of the supply of over 48 million tonnes of crude oil by 2010. India, on the other hand, wanted a 15-20 per cent stake in the firm.
"They have told us that they will accommodate ONGC Videsh Ltd in either Vankor oil and gas field or three other exploration blocks of Rosneft that would give 4-5 million tonnes of crude oil annually," a top government official said.
Asked if Yuganskneftegaz deal was off, Petroleum Minister Mani Shankar Aiyar said, "there are no full stops and dialogue is continuing." He did not elaborate.
Officials said OVL will get equity in Rosneft's Far East Siberian fields that would be equivalent to giving India 4-5 million tonnes of crude oil annually.
Besides, there was also a possibility of accommodating OVL in the gigantic Sakhalin-3 oil and gas fields in Far East Russia.
"Talks are continuing and I hope to take this forward when I visit Moscow on February 21," Aiyar said but did not elaborate.
A team from OVL visited Moscow earlier this month to study data on the Vankorskoe oil and gas field -- comprising Vankor field and Northern Vankor field -- which have 125 million tonnes of oil reserves and 75 billion cubic meters of gas reserves.
By 2005, Rosneft intends to boost oil output in the Vankor field from the initial 500,000 tonnes to 1.5 million tonnes. It palns to reach 6 million tonnes by 2008.
OVL, which already has 20 per cent stake in Sakhalin-1 project, is looking at 10-20 per cent stake in Sakhalin-3 fields, the official said.
The company has intensified its hunt for acquiring a stake in oil blocks in West Africa, Latin America and the Caspian region following its failure to acquire Royal Dutch/Shell's 50 per cent stake in block 18 off Angola.
OVL is now looking at other blocks in Angola. Also on its radar are exploration blocks in Libya, Yemen, Qatar, Ivory Coast, Cuba, Sierra Leone, Bangladesh, Kazakhstan and Russia.
OVL is also looking at properties in Nigeria, Ivory Coast, Ghana and Congo among the other African countries.
