ONGC Videsh Ltd is in talks with Russia’s Rosneft to pick up equity in the Magadan 2 project.
“The OVL team has just returned after collecting data for prospecting. Talks are in initial stages. Russia will add to OVL’s target of aggressively expanding portfolio,” OVL Managing Director D.K. Sarraf told media-persons at Petrotech 2012.
The Russian Deputy Minister for Energy, Yury Sentyurin, also said they have suggested that ONGC look at (investing in) Magadan 2. The proposal was made to India during the India-Russia Joint Working Group meet on October 13. Rosneft has been offered five blocks on the Sea of Okhotsk shelf for geological surveying, exploration and development. The five blocks are Magadan 1, 2 and 3, Lisyansky and Kashevarovsky.
According to Rosneft estimates, the total recoverable resources at these deposits stand at over 1.1 billion tonnes of liquid hydrocarbons and 2 trillion cubic metres of gas, including 850 million tonnes of oil and 1.789 trillion cubic metres of gas at the Magadan 1, 2 and 3 blocks.
Last month, OVL announced acquisition of US-based Hess Corp’s stake in Azeri, Chirag and Guneshli (AGC) group of oil fields in Azerbaijan for $1 billion.
At present, ONGC Videsh has activities in 15 countries including Brazil, Colombia, Cuba, Iran, Iraq, Kazakhstan, Libya, Myanmar, Nigeria, Russia, South Sudan, Sudan, Syria, Venezuela and Vietnam.
In 2011-12, OVL produced 8.75 million tones oil equivalent (MMTOE). At present, OVL is invested in Russia’s Sakhalin-1 project.