Russian President Vladimir Putin removed Exxon Neftegaz, a regional subsidiary of US major oil and gas company Exxon Mobil, as the operator of Sakhalin-1, and handed over the project and its assets and equipment to the new operator.
Japan’s Sodeko consortium and ONGC Videsh, which were previously foreign shareholders in the project, will have to apply to the Russian government to regain their stake in the project.
“The Board of Directors of ONGC Videsh, in its meeting held on October 18, 2022, has agreed to the Company’s claim of rights in Sakhalin-1,” ONGC said in a notice to the stock exchanges along with financial results for the July-September quarter. ”
It added that the company expects to retain a stake in the project. It does not expect this change to have any major impact on rights and obligations.
Russia has given 20 percent stake in Sakhalin-1 to Russian oil producer Rosneft. Russia has asked foreign partners in the project — Exxon Mobil, Sodeco and ONGC Videsh — to apply before mid-November to regain their stake in the project.
Sodeco Group has decided to buy back the stake. Exxon Mobil has said it has completely pulled out of Sakhalin-1 after the asset forfeiture and has no plans to re-engage in the project.
Production on Sakhalin-1 ceased in May after Exxon Neftegaz withdrew from the project in an emergency. Exxon withdrew from the Neftegaz project amid sanctions imposed on Russia after the invasion of Ukraine.
: Language Inputs
This post is sourced from newspapers, magazines and third-party websites. For more information please check NewsDay Express Disclaimer.