India vies for bigger share in Russia's energy sector amid Ukraine invasion

India's petroleum and natural gas giant ONGC is mulling over the prospect of acquiring stakes in multiple Russian oil and gas fields. This comes amid the global energy crisis in the wake of the war between Russia and Ukraine.

India vies for bigger share in Russias energy sector amid Ukraine invasion
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Moscow: India's petroleum and natural gas giant ONGC is mulling over the prospect of acquiring stakes in multiple Russian oil and gas fields. This comes amid the global energy crisis in the wake of the war between Russia and Ukraine.


Following Russia's invasion of Ukraine, several Western energy companies have reduced their stakes in multiple Russian oil and gas fields. 


According to a report by Economic Times, the ONGC bid for a 50% stake vacated by Shell in the Salym fields in Siberia was rejected.


The ONCG board is now mulling over a bid for the 27.5% stake by Shell in the Sakhalin-II oil and natural gas project and the 30% share of ExxonMobil in the Sakhalin-I project.


ONGC also reportedly made an offer to purchase Shell’s stake in Salym which is a joint venture with Russia's petroleum and natural gas company Gazprom Next. However, the ONGC offer was rejected by Shell.


Gazprom Next is developing oil fields in Siberia.  


ONGC has not offered cash for these crucial energy deals, offering instead to share future oil revenues with British energy major Shell. Salym produces 17,000 barrels of oil per day and 274 million cubic meters of associated gas per annum. It is unclear whether ONGC revised the offer.


India's government-owned petroleum companies such as ONGC, Bharat Petroleum, Indian Oil and Oil India are also conducting internal discussions regarding the purchase of BP’s 20% stake in Russian energy giant Rosneft.


Indian petroleum companies are likely to face tough competition from Chinese energy giants in their bid to acquire stakes in Russia's energy sector.

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