India’s ONGC Videsh issues end June Sokol tender

18 April 2013 14:17  [Source: ICIS news]

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

OVL is offering 700,000 barrels of Sokol crude for loading from the DeKastri terminal on the eastern Russian island of Sakhalin on 27-30 June. The tender will close on 22 April, with validity until 23 April, according to the company’s statement.

OVL last awarded a tender offering a 700,000-barrel Sokol crude for 19-22 loading to a Chinese trader at a weaker level around Oman/Dubai quotes plus $7.00-8.00/bbl cost and freight (C&F). Premiums for Sokol have declined amid weaker 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.

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%).

By: James Dennis
+65 6780 4327

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