ONGC for JVs with Russian oil companies Gazprom and Rosneft

New Delhi, Nov 2 (UNI) State-owned upstream oil major, ONGC today reiterated that they would go in for exploration of oil and gas through joint venture partnerships with Russian companies-- Gazprom and Rosneft.

ONGC's overseas wing, ONGC Videsh (OVL) Chief R S Butola said the joint venture would look for properties in Russia and other countries.

Earlier, Petroleum and Natural Gas Minister Murli Deora had said that OVL will make large investments in Exploration and Production (E and P) projects in Russia.

After meeting Mr Victor Khristenko, Minister for Industry and Energy of the Russian Federation at Moscow last week, Mr Deora took up the issue of increased cooperation between Indian oil companies and their Russian counterparts.

The matter of obtaining participating interest in upstream projects of Russia came up during the discussion. He reiterated the resolve of ONGC Videsh Ltd to make large investments in the E&P projects likely to come up in Sakhalin region. The Minister extended an invitation to his counterpart to join in the function to be held in the first week of December 2006 at Mangalore to receive the first cargo of OVL's share of crude production from the Sakhalin-I Project.

The Minister also spoke of the interest of Indian Oil Corporation (IOC) to partner Russian companies in downstream projects in Russia and India.

Mr Victor Khristenko was appreciative of the involvement of OVL in Russia and assured the Minister of a favorable consideration of the Indian interest. He also promised to try and join in the function at Mangalore.

The visit comes in the wake of President Vladimir Putin's visit to India in January next year, where he will be the Chief Guest at the Republic Day celebrations in New Delhi on January 26, 2007. The talk with oil majors Gazprom and Rosneft is slated before Mr Putin's visit, Mr Butola said.

Russian firms will hold 51 per cent stake in the JVs. Mr Butola said.

''Once you have a company registered in Russia you look at things in a more focused manner," Mr Butola said.

China's CNPC and Rosneft last month formed Vostok Energy Ltd. to undertake exploration work in Russia and obtain licences for various types of subsoil resource use.

OVL and Rosneft have already partnered in the Sakhalin-I oilfield, operated by U S oil major ExxonMobil. The two firms are also exploring a joint bid to get a stake in the Sakhalin-III field.

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