India’s ONGC Videsh offers Sokol crude oil for June loading

01 April 2013 08:21  [Source: ICIS news]

SINGAPORE (ICIS)--Indian producer ONGC Videsh Ltd (OVL) is offering Sokol crude for loading from its equity holding Sakhalin-1 in eastern Russia on 19-22 June via a tender, according to a company document issued on Monday.

OVL will offer 700,000 barrels of Sokol crude for loading from the DeKastri terminal on the eastern Russian island of Sakhalin on 19-22 June, the document showed.

The tender will close on 3 April, with validity until 4 April, according to the company's statement.

OVL last awarded a tender offering a 700,000-barrel Sokol crude for 19-22 May loading to a European major at Oman/Dubai quotes plus $8.00-8.50/bbl (€6.24-6.63/bbl) CFR (cost & freight).

Premiums for Sokol have softened recently, because of a decline in refining 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.

Exxon Neftegas Ltd (ENL), a subsidiary of US-based ExxonMobil, is the operator and holds a 30% interest in the Sakhalin-1 project, while OVL has a 20% stake 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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