Context: –
ONGC Videsh, a subsidiary of Oil and Natural Gas Corporation, recently said that oil production from the Sakhalin-1 project in Russia is back from zero to a high of around 200,000 barrels per day (bpd).
Read also:- GOBAR-Dhan Scheme (Galvanising Organic Bio-Agro Resources)
An overview of the news
- ONGC expressed confidence that it would be able to retain its 20 per cent stake in the Sakhalin-1 project.
- ONGC last year applied to the new Russian operator of Sakhalin-1 to retain its stake in the oil and gas project in the country’s Far East.
- ONGC Videsh also has a 26% stake in Russia’s Vankorneft, a company that owns Vankor Field and the North Vankorlicence.
- ONGC, which has set a net zero target by 2038, is expecting gas production from its Mozambique project to begin by 2026-27.
Read also:- The limits to sourcing Russian Oil
About Sakhalin-1 project
- The Sakhalin-1 project is an oil and gas exploration and production project located on the northeastern coast of Sakhalin Island in Russia.
- It is one of the largest foreign direct investments in Russia’s energy sector.
- The Sakhalin-1 project is estimated to have significant oil and gas reserves.
- Consortium: The project is operated by Exxon Neftegas Limited, a subsidiary of ExxonMobil, in cooperation with other international partners, including Rosneft, ONGC Videsh Limited, and SODECO (a consortium of Japanese companies).
- Technological Challenges: The project faced numerous technological challenges due to its location in a remote and harsh environment.
- The offshore fields are located in the subarctic region, where ice and extreme weather conditions pose significant operational difficulties.
- Socio Economic Impact: The Sakhalin-1 project has had a significant socioeconomic impact on the region and Russia as a whole.
- It has contributed to job creation, infrastructure development, and technology transfer, stimulating economic growth in the area.
- Future Expansion: Additional exploration activities are being conducted to identify new reserves and expand production capacity.
- Collaboration and Partnerships: The Sakhalin-1 project serves as an example of successful international collaboration in the energy sector.
- It has brought together major international oil companies and Russian partners to leverage their expertise, resources, and technology.
- About ONGC Videsh
- ONGC Videsh Limited is a Miniratna Schedule “A” Central Public Sector Enterprise (CPSE) of the Government of India under the administrative control of the Ministry of Petroleum and Natural Gas.
- It is a wholly owned subsidiary and overseas arm of Oil and Natural Gas Corporation Limited (ONGC).
- ONGC Videsh Limited’s primary business is to explore possibilities for oil and gas production outside India, including exploration, development and production of oil and gas.
Read also:- The New Gas Pricing Policy
