India’s ONGC Videsh offers early January Sokol crude oil

26 October 2012 10:27  [Source: ICIS news]

SINGAPORE (ICIS)--Indian producer ONGC Videsh Ltd (OVL) issued tender offering early January-loading Sokol crude from its equity holding in eastern Russia, according to a company statement on Friday.

OVL is offering 700,000 bbl of Sokol crude for loading from the DeKastri terminal on the eastern Russian island of Sakhalin on 5-8 January 2013. The tender will close on 30 October with validity until 31 October.

In late September, OVL placed a tender offering a 700,000 bbl 1-4 December 2012 loading Sokol to BP at an eight-month high of around Oman/Dubai quotes plus $8.40/bbl (€6.47/bbl), traders said. Sokol premiums have been buoyed by strong refining margins for middle distillate rich grades resultant demand from refineries in Asia.

OVL is the overseas unit of Oil and Natural Gas Corp (ONGC), India’s largest state-owned oil and gas exploration company. 

The Sakhalin-1 project consists of three fields: Chayvo, Odoptu and Arkutun-Dagi. They are located offshore on the northeast coast of Sakhalin Island in eastern Russia.

Together they contain an estimated volume of 2.3bn bbl of oil and 17.1 trillion cubic feet (tcf) of gas. Crude production from the project is marketed under the name Sokol.

OVL has a 20% stake in the Sakhalin-1 project.

Exxon Neftegas Ltd (ENL), a subsidiary of US-based ExxonMobil, is the operator and holds a 30% interest in the Sakhalin-1 project.

Other partners are Russian oil company Rosneft, acting via its affiliates RN-Astra (8.5%) and Sakhalinmorneftegas-Shelf (11.5%).

($1 = €0.77)

By: James Dennis
+65 6780 4327

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