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Govt asks state firms to consider purchasing Russian oil properties

Govt asks state companies to consider buying Russian oil possessions

BRAND-NEW DELHI: India has asked state-run energy business to assess the possibility of buying European oil major BP’s stake in sanctions-hit Russian firm Rosneft, two people acquainted with the matter said.
BP has announced it is abandoning its 19.75% stake in Rosneft. learn more
The oil ministry last week communicated its intent to ONGC Videsh Ltd (OVL), Indian Oil Corp, Bharat Petro Resources Ltd (BPRL), Hindustan Pertoleum’s (HPCL) subsidiary Prize Petroleum Ltd, Oil India and GAIL (India) Ltd, the sources stated.
Companies and the oil ministry did not react to Reuters emails looking for comment.
While Western nations have actually imposed sanctions against Russia over the war in Ukraine, India has not clearly condemned Moscow’s actions there.
The world’s third most significant oil importer and consumer, India imports about 85% of its 5 million barrels each day (bpd) of oil requirements.
The call on Indian companies to explore purchasing the stake in Rosneft followed BP CEO Bernard Looney satisfied Indian oil minister Hardeep Singh Puri in March.
BP declined to comment.
Oil ministry also asked OVL, the overseas investment arm of Oil and Natural Gas Corp, to think about buying a 30% stake held by Exxon Mobile Corp, in the Sakhalin 1 job in Russia’s Far East. Exxon is the operator of the task.
OVL already holds a 20% stake in the job.
Exxon said on March 1 it would exit about $4 billion in assets and terminate all its Russia operations, consisting of Sakhalin 1.
OVL also holds 26% stake in Vankorneft, owner of the Venkor field in the West Siberian Basin.
Separately, a consortium of Oil India, IOC, and BPRL, the exploration arm of state refiner Bharat Petroleum Corp, holds a 23.9% stake in Vankorneft and a 29.9% stake in Taas-Yuryakh in east Siberia.
Among the sources stated Indian companies wish to get stakes in Russian assets at affordable rates offered the threat included, dubbing the prospective transactions “distress sales”.
A second source said Indian business needed to study the effect of sanctions on potential financial investments and yet to start a procedure of due dilligence.
“The fear is that this financial investment might get stuck in Russia as sanctions might disallow us from bringing equity oil and gas to India.”
“Our effort has been to see how we can stabilise financial deals, financial engagements with Russia in the present context … There are naturally restrictions, there are sanctions by some countries, and we will need to kind of overcome that,” India’s foreign ministry spokesperson Arindam Bagchi told a press conference.
Exxon stated on Wednesday its Russian system Exxon Neftegas Ltd has actually stated force majeure for its Sakhalin-1 operations due to sanctions on Russia that have made it progressively challenging to ship crude to clients.

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Published at Thu, 28 Apr 2022 17:07:41 +0000

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