India’s ONGC Videsh offers end-March Sokol crude oil

11 January 2013 08:12  [Source: ICIS news]

SINGAPORE (ICIS)--Indian producer ONGC Videsh Ltd (OVL) is offering Sokol crude for end-March loading from its equity holding in eastern Russia via a tender, the company said on Friday.

OVL is offering 700,000 barrels of Sokol crude for loading from the DeKastri terminal on the eastern Russian island of Sakhalin on 20-23 March. The tender will close on 15 January, with validity until 16 January, according to the company’s statement.

OVL last awarded a tender offering a 700,000-barrel Sokol crude for 23-26 February to Vitol, at a premium of around $9.00/bbl (€6.75/bbl) to Oman/Dubai quotes, which is the highest premium achieved in 2012.

Premiums for Sokol have been buoyed by good margins for middle distillate rich grades.

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 – that are located offshore on the northeast coast of Sakhalin Island in eastern Russia.

Together, they contain an estimated volume of 2.3bn barrels 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.

The other partner in the project is Russian oil company Rosneft, which is acting via its affiliates RN-Astra (8.5%) and Sakhalinmorneftegas-Shelf (11.5%).

($1 = €0.75)

By: James Dennis
+65 6780 4327

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