From Rosneft with love

Vol 16, PW 1 (26 Jul 12) News in Brief

Around 100bn-tonnes of untapped Arctic oil and gas is tempting ONGC Videsh (OVL) to snuggle up to Russia’s Rosneft.

Russian deputy Prime Minister Dmitry Rogozin and Indian foreign minister SM Krishna met on July 17 in Delhi to discuss a potential OVL ‘farm-in’ with Rosneft in the Arctic. “International companies are eager to sign agreements with Rosneft because of Russian tax concessions on Arctic projects,” says an oil ministry source.

Rosneft is offering up to 33% at 12 fields to companies like ExxonMobil, Eni and Statoil. OVL is hoping to partner ExxonMobil or Eni at one or more of the blocks.

Rosneft will retain 67% but all exploration expenditure must be met by non-Russian partners who must also pay a premium on oil and gas discovered. OVL wrote to Rosneft president Eduard Khudainatov on May 4, outlining its interest.

OVL is happy to bed Russian companies and is separately bidding with Petronet-LNG and IndianOil for a 20% in Russia’s Novatek LNG project.