India has requested state-run power companies to consider the opportunity of buying European oil main BP’s stake in sanctions-hit Russian agency Rosneft, two folks aware of the matter stated.
BP has introduced it’s abandoning its 19.75% stake in Rosneft.
The oil ministry final week conveyed its intent to ONGC Videsh Ltd (OVL), Indian Oil Corp., Bharat Petro Resources Ltd (BPRL), Hindustan Pertoleum’s subsidiary Prize Petroleum Ltd, Oil India Ltd and GAIL (India) Ltd, the sources stated.
Indian companies and the oil ministry didn’t reply to Reuters emails in search of remark.
While Western nations have imposed sanctions in opposition to Russia over the struggle in Ukraine, India has not explicitly condemned Moscow’s actions there.
The world’s third greatest oil importer and client, India imports about 85% of its 5 million barrels per day (bpd) of oil wants.
The name on Indian companies to discover buying the stake in Rosneft got here after BP CEO Bernard Looney met Indian oil minister Hardeep Singh Puri in March.
BP declined to remark.
Oil ministry additionally requested OVL, the abroad funding arm of Oil and Natural Gas Corp, to consider buying a 30% stake held by Exxon Mobile Corp, within the Sakhalin 1 challenge in Russia’s Far East. Exxon is the operator of the challenge.
OVL already holds a 20% stake within the challenge.
Exxon stated on March 1 it could exit about $4 billion in assets and discontinue all its Russia operations, together with Sakhalin 1.
OVL additionally holds 26% stake in Vankorneft, proprietor of the Venkor area within the West Siberian Basin.
Separately, a consortium of Oil India, IOC, and BPRL, the exploration arm of state refiner Bharat Petroleum Corp, holds a 23.9% stake in Vankorneft and a 29.9% stake in Taas-Yuryakh in east Siberia.
One of the sources stated Indian companies hope to get stakes in Russian assets at discounted charges given the danger concerned, dubbing the potential transactions “misery gross sales”.
A second supply stated Indian companies wanted to examine the influence of sanctions on potential investments and but to begin a means of due diligence.
“The worry is that this funding might get caught in Russia as sanctions may bar us from bringing fairness oil and fuel to India.”
“Our effort has been to see how we will stabilise financial transactions, financial engagements with Russia within the present context … There are after all constraints, there are sanctions by some international locations, and we could have to type of work by means of that,” India’s international ministry spokesperson Arindam Bagchi instructed a information convention.
Exxon stated on Wednesday its Russian unit Exxon Neftegas Ltd has declared power majeure for its Sakhalin-1 operations due to sanctions on Russia which have made it more and more tough to ship crude to clients.
(Additional reporting by Krishna N. Das and Ron Bousso; enhancing by David Evans)
(Only the headline and film of this report could have been reworked by the Business Standard employees; the remainder of the content material is auto-generated from a syndicated feed.)