Putin visit: India Inc eyes stake in Russian oilfields, LNG project

New Delhi: Indian energy firms are eyeing stake in oilfields in Russia's Pechora and Okhotsk Seas as well as developing the LNG project in the former communist nation, a statement issued after talks between visiting Russian President Vladimir Putin and Prime Minister Narendra Modi said.

The two sides are also looking at the possibility of building a gas pipeline from Russia to India to supply energy, the joint statement said.

They also hoped for early completion of talks by Indian companies to take a stake in Vankor cluster at an early date.

ONGC Videsh, the overseas arm of Oil and Natural Gas Corp (ONGC), entered Russia in 2001 by buying 20 per cent stake in the Sakhalin-1 oil and gas field in Far East Russia.

Since then it has acquired Russia-focused Imperial Energy as well as picked up stake with other state-owned firms in the Vankor and Taas-Yuryakh Neftegazodobycha oilfields in Russia. The joint statement said the two sides supported continuing dialogue between PJSC NOVATEK and the energy companies of India for cooperation in the field of liquefied natural gas (LNG). Novatek is developing a $20 billion LNG project Russia's frozen north. Arctic LNG 2 in the north of Siberia is the second project Novatek is doing after it completed Yamal LNG project last year.

"The two nations expressed their support to companies from both sides for development of cooperation and exploring opportunities for joint development of oil fields in Russian territory, including in the Arctic shelf of Russia and joint development of projects on the shelf of the Pechora and Okhotsk Seas," the statement said.

The two nations in 2017 jointly studied laying a gas pipeline from Russia and other countries to India.

In this context, on Friday they "noted the ongoing consultations between the Indian and Russian ministries and companies to explore possibilities of constructing the gas pipeline to India and agreed to continue to consult each other on the possible conclusion of the MoU between the two ministries."

At the talks, the two sides noted the importance of further widening of energy cooperation between India and Russia taking into account India's interest in Russian energy assets, including natural gas, as well as in the implementation of prospective joint projects in the field of renewable energy sources.

"They acknowledged the potential for mutually beneficial cooperation in energy sector, and encouraged their companies to consider a wide range of opportunities for cooperation, including long-term contracts, JVs and acquisitions of energy assets in both countries as well as possible cooperation in third countries," the statement said.

The two nations welcomed the ongoing cooperation between the Russian and Indian energy companies, including investments of Indian consortium in Vankorneft and Taas-Yuryakh Neftegazodobycha in Russia and the participation of the PJSC Rosneft oil company in the Essar Oil.