India to seek stake in future Russian oil and gas projects

  • 12/02/2008

  • Hindu

In an attempt to expand ties in the oil and gas sector and achieve the goal of energy security, India will seek stake in future Russian oil and gas projects, including the prestigious Sakhalin III and IV oil fields off the Russian East Coast, during the visit of Russian Prime Minister Victor A. Zubkov to New Delhi beginning Tuesday. The matter is likely to figure during the bilateral talks between Prime Minister Manmohan Singh and his visiting Russian counterpart. Dr. Singh had visited Russia during October last year. The talks would also lay emphasis was on the mutually beneficial projects in upstream, mid-stream and downstream sectors in India, Russia and Third World countries between the companies of the two countries in hydrocarbon sector. In late November last year Petroleum and Natural Gas Minister Murli Deora had visited Moscow and held talks with Mr. Zubkov on acquiring stake for Indian public sector oil companies in Sakhalin III and IV. The Russian Prime Minister had at that time informed Mr. Deora that he would discuss the matter in detail when he visited India, sources said here. The two countries are likely to take up mutually beneficial projects in the field of exploration and production, grassroots refineries, modernisation of refineries, gas-based petrochemical plants, gas processing plants, participation in liquefied natural gas. Bids to be invited Sakhalin-I and II projects have already been finalised and Russia is planning to invite bids in future for Sakhalin-III, IV, V and VI projects in the vast energy-rich region. India is likely to push for an agreement between OVL and Russia's Rosneft for joint bidding for the Sakhalin-III project. Also on the discussion table could be the Trebs and Titov exploration blocks in Timan Pechora region in partnership with Rosneft. Interestingly, figures for India's outward investments show that for the period April 1996 to October 2006, Russia accounted for $2,830.6 millions worth of approved investments from India. While this is almost 12.7 per cent of the total amount of outward investments approved during the same time period, it is important to note that Indian investments in Russia are led by the public sector and are clearly focussed on the oil and gas industry. During the visit, the Russian Prime Minister will participate in the inauguration of the