|
Cabinet Committee on Economic Affairs (CCEA) today approved the additional investment in Sakhalin-I project of Oil and Natural Gas Commission (ONGC) Videsh. The CCEA gave approval
to authorize ONGC Videsh Ltd. to invest an additional amount of up to US$ 1.07 billion (in addition to US $ 1.7 billion already approved) for the Phase-I development of Sakhalin – I offshore field. ONGC/OVL will raise this money from their own resources.
The additional amount of US $ 1.07 billion will include about US $ 503 million towards Carry Loan to Russian parties in the Production Sharing Agreement (PSA).
OVL will take all necessary steps to ensure that all costs, including the increased cost approved now, is cost recoverable under the PSA.
The additional investment in the project will help in acquiring equity oil abroad and will help in increasing oil security for the country.
ONGC Videsh Ltd. (OVL) acquired 20 per cent Participating Interest in Sakhalin I Offshore Project from two subsidiaries of Russian Government oil company Rosneft-SMNG-S and Rosneft-S in July, 2001. The partners of OVL (20 per cent stake) in Sakhalin I Project are ExxonMobil, one of the super majors (30 per cent), Rosneft & SMNG-S, the National Oil Companies of Russia (20 per cent) and Sodeco (30 per cent), a consortium of Japanese companies. ExxonMobil is the Operator of the Project.
|
