ONGC not to sell Sakhalin stake

Oil and Natural Corporation (ONGC) is not planning to sell its stake in the Sakhalin 1 oil field to the Russian gas company Gazprom. Instead, the company is in negotiations with Gazprom to sell its share of gas from the fields, ONGC Chairman RS Sharma said.

ONGC's investment in Sakhalin 1 has run into trouble with the Russian government seeking revised terms on account of delays and cost overruns. Sharma, however, refused to comment on the issue. He clarified that the first instalment of oil 70,000 barrels of oil from the fields is expected to reach Indian shores by November.

ONGC's overseas arm ONGC Videsh has 20 per cent stake in Sakhalin-I which is operated by ExxonMobil. UK-based the Observer newspaper reported on Sunday that Gazprom was buying the 20 per cent stake from ONGC. Gazprom has been seeking a foothold on Sakhalin with a swap deal with Shell, which is the lead operator on the neighbouring Sakhalin-II project.