Sakhalin-I gas for India only by Sept

India may have to wait awhile for its share of natural gas from Sakhalin-I fields. It will get its first crude consignment of 20,000 barrels per day from the field in September. This includes Russian oil major Rosneft's share of crude also.

"ONGC Videsh Ltd will start with smaller consignments this year, and by early next year larger ones will start coming," a company executive said.

He added that according to an agreement reached with Rosneft, ONGC Videsh will have the rights for the Russian company's share of crude also.

This was in return for the loan given by OVL to Rosneft towards the latter's infrastructure development obligation.

ONGC Videsh, which is a subsidiary of the state-owned Indian Oil and Natural Gas Corporation and looks after overseas operations, has 20 per cent stake in the Sakhalin-I fields of Russia. The fields started production in October last year.

The company executive said the first cargo to be transported by tankers owned by the consortium having stakes in the field will hit Indian shores in September with 700,000 barrels.

By early next year, OVL will start exporting 100,000 barrels per day from the field, which included the 50,000 barrel per day share of Rosneft.

The field is operated by Exxon Mobil with 30 per cent interest. Co-venturers in the field include the Japanese consortium SODECO (30 per cent) and affiliates of the Rosneft "" RN-Astra (8.5 per cent) and Sakhalinmorneftegas-Shelf (11.5 per cent).

Meanwhile, India is still negotiating with Exxon-Mobil for getting the natural gas produced from the field to India. China has also offered to buy the gas and transport it through a pipeline. ONGC has constituted a price negotiation team to discuss the commercial issues with Exxon-Mobil directly.