HomeEnergyIndian Official: No Proposal Received for Exxon's 'Sakhalin-1' Stake Purchase

Indian Official: No Proposal Received for Exxon’s ‘Sakhalin-1’ Stake Purchase

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India did not get any proposals to buy a stake in Exxon’s new oil and gas project operator “Sakhalin-1”; thus, it did not pursue this option. During the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) oil and gas show, Pankaj Jain, the Secretary of India’s Ministry of Petroleum and Natural Gas, shared this information with the media.

“We have not received such an offer,” he said.

A ministry spokesman mentioned that India is participating in multiple oil projects in Russia, one of which is “Sakhalin-1,” and that India also holds a share in the project.

At the end of September, the Russian government approved guidelines allowing Exxon to evaluate and sell its part in “Sakhalin-1.” Only a Russian legal entity that satisfies a set of requirements will be allowed to purchase it following these rules.

Sakhalin-1
PSA for the Chayvo, Odoptu and Arkutun-Daginskoye fields on the shelf of the island. Sakhalin (Sakhalin-1 project) was signed in 1995 and is valid until 2055 / Exxon Mobil Corporation

Exxon’s deadline for selling its part in the “Sakhalin-1” project was extended to the autumn of 2023 by Russian President Vladimir Putin in April. In the past, it was presumed that the government would conduct the evaluation and sale within four months after deciding to refuse the stake transfer. This deadline was pushed back to the middle of November of this year thanks to a directive issued on April 5 that extended it by a year.

In the autumn of 2022, Russia brought under Russian authority the operator of the “Sakhalin-1” project. In Yuzhno-Sakhalinsk, it was re-registered as “Sakhalin-1,” and the controlling company of the operator was renamed “Sakhalinmorneftegaz-shelf.” Previously, it had been known as “Exxon Neftegaz.”

On October 14, 2022, the limited liability company “Sakhalin-1” became the project’s new operator when it was registered. The Russian government approved the transfer of 20% of the share in the new operator “Sakhalin-1” to the Indian company ONGC Videsh Limited and 30% of the stake to the Japanese company Sakhalin Oil and Gas Development Co. Ltd. (Sodeco). Both of these companies have stated that they intend to continue their involvement in the project. RN-Astra is responsible for 8.5% of the project, while “Sakhalinmorneftegaz-shelf” is responsible for 11.5%. Exxon Neftegas, which is a subsidiary of ExxonMobil, had a thirty per cent stake in the “Sakhalin-1” project; however, ExxonMobil stated in March 2022 that it would withdraw from both the project and Russia altogether.

Frontier India News Network
Frontier India News Networkhttps://frontierindia.com/briefs
Frontier India News Network is the in-house news collection and distribution agency.

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