India’s ONGC Videsh offers late February Sokol crude oil

06 December 2012 14:01  [Source: ICIS news]

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

OVL is offering 700,000 bbl of Sokol crude for loading from the DeKastri terminal on the eastern Russian island of Sakhalin on 23-26 February 2013. The tender will close on 12 December with validity until 13 December.

Previously, OVL placed a tender offering a 700,000 bbl 26-29 January 2012 loading Sokol to BP at a strong premium of Oman/Dubai quotes plus $8.00-8.50/bbl, traders said. Premiums for Sokol have been supported by good margins for middle distillate rich grades which has generated 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%).

By: James Dennis
+65 6780 4327

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