By Nidhi Verma
NEW DELHI (Reuters) – Russia’s Sakhalin-1 project is expected to begin liquefied natural gas (LNG) production in 2028, according to the managing director of Indian firm holding a stake in the project.
India’s ONGC Videsh holds 20% stake in Sakhalin-1 project in Russia, operated by Exxon Mobil with a 30% stake.
“Sakhalin-1…the LNG is being planned to be produced in 2028,” Alok K Gupta said at the World Energy Policy Summit.
ONGC Videsh, is the overseas investment arm of state-run explorer Oil and Natural Gas Corp.
Gupta wants ONGC Videsh to expand its assets portfolio to add producing or “near to production” projects to raise the company’s output to 500,000 barrels per day (bpd) in 10 year.
He, however, added that his firm has mostly gained by acquiring stakes in exploration assets, such as Sakhalin-1 which gives sustained production over a longer duration.
ONGC Videsh acquired a stake in the Sakhalin- 1 project in 2001. It began producing oil in October 2005, and since then has been a regular source of revenue for the Indian company.
“We are adopting a mix of two-three strategies.
One is organic growth through exploration; second is through discovered assets, which have to get into production in short to medium term; and third is acquisition of some discovered properties which may have a slightly longer term horizon,” Gupta said at the online event.
Outlining ONGC Videsh’s success in operating overseas assets, Gupta said his firm plans to boost oil production from CPO-5 block in Colombia to 60,000 bpd in about two years.
Production from the block, operated by ONGC Videsh with 70% stake, is expected to rise to 20,000 bpd in about two months as it adds two new wells of about 4,000 bpd each, Gupta said.
(Reporting by Nidhi Verma; Editing by Tomasz Janowski)
