India’s ONGC Videsh awards end March Sokol crude oil tender

28 March 2013 14:37  [Source: ICIS news]

SINGAPORE (ICIS)--Indian producer ONGC Videsh Ltd (OVL) has awarded a tender offering a cargo of Sokol crude for loading in late May from its equity holding in eastern Russia via a tender at a weaker level, market sources said on Thursday.

The 700,000 bbl of Sokol crude for loading from the DeKastri terminal on the eastern Russian island of Sakhalin on 19-22 May sold at around Oman/Dubai quotes plus $8.00-8.50 cost and freight (C&F). The cargo was awarded to a European major, sources said. Sokol values have softened amid the recent decline in middle distillate cracks.

In early March, OVL awarded a tender offering 730,000 bbl cargo of 27-30 April loading Sokol to a major at around Oman/Dubai quotes plus $9.00-9.50 C&F.

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 = €0.78)

By: James Dennis
+65 6780 4327

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