19:52 GMT +321 October 2018
Listen Live
    Rosneft

    Indian Firm to Pay Russia's Rosneft $230 Mln to Settle Sakhalin-1 Dispute

    © Sputnik / Maxim Blinov
    Asia & Pacific
    Get short URL
    0 90

    In July, Russia’s largest oil company, Rosneft, filed a lawsuit against five entities - Sakhalinmorneftegaz, RN-Astra, Exxon Neftegas Ltd, Sakhalin Oil and Gas Development Co., and ONGC Videsh Limited, accusing these firms of "unjust enrichment and interest gained by using other people’s money" and claimed $1.4 billion in damages

    India's state-owned ONGC Videsh Ltd and its partners will pay $230 million to Russian energy giant Rosneft in an out of court settlement of a dispute regarding oil production in Russia's Sakhalin-1 oil field.  

    READ MORE: ONGC Videsh Vankorneft Acquires 15% Stake in Namibia's Offshore Block

    "We have agreed for an out-of-court settlement and the consortium has agreed to pay $230 million," N.K. Verma, managing director, ONGC Videsh, told reporters in New Delhi.

    Verma said that the Indian firm has already made the payment to Rosneft.

    The Indian state-owned firm holds 20% interest in the Sakhalin-1 project that it bought way back in 2001 for $1.7 billion. The project started production in 2005.

    Gas production from the project — India's first major investment in Russia's energy sector — is increasing after Russia lifted output restrictions as part of a global deal with OPEC. Verma stated that production at the Sakhalin-1 project reached 250,000 barrels per day, up from some 200,000 bpd.

    READ MORE: Russia's Rosneft Closes Deal to Buy 49% of India's Essar Oil — Company

    Sakhalin-1 is a large-scale project and is carried out under a production sharing agreement (PSA) signed in 1996. The production is being carried out on the northeastern shelf of Sakhalin Island.

    Related:

    Pumped Up! India Gets Ready for Arrival of BP and Rosneft to the High Street
    Investors From Outside China, India Interested in Rosneft Privatization
    Global Oil Majors Rosneft, Total in Bid to Enter India's Retail Market
    Rosneft May Buy Up to 74% Stake in India's Essar Oil in June
    Tags:
    energy companies, dispute, oil production, Sakhalin-1, India's Oil and Natural Gas Corporation (ONGC), Rosneft, India, Russia
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik
    • Сomment