Context: Recently, India’s state-run Oil and Natural Gas Corp said oil output from the Sakhalin-1 project in Russia is raise to its plateau level of about 200,000 barrels per day (bpd) from zero.
Sakhalin – 1 Project
- The Sakhalin-1 oil and gas development project is located in the Okhotsk Sea, off the northeastern coast of Sakhalin Island in the Russian Far East.
- It comprises three offshore fields namely Chayvo, Odoptu, and Arkutun-Dagi.
- All the three fields under the Sakhalin-1 project are located in the Okhotsk Sea, off the northeastern coast of Sakhalin Island.
- The total project area is estimated to be approximately 1,140km2.
- Sakhalin-1 was a technically challenging project to develop due to the harsh arctic climatic conditions in the Northern Sakhalin region.
- Exxon Neftegas (ENL), a subsidiary of Exxon Mobil, which holds a 30% participating interest, operates the Sakhalin-1 project.
- The other partners of the project are the Japanese consortium Sakhalin Oil and Gas Development Company (SODECO, 30%), India’s state-owned ONGC Videsh (20%), and Russian oil company Rosneft (20%).
ONGC Videsh Limited
- ONGC Videsh Limited is a Miniratna Schedule “A” Central Public Sector Enterprise (CPSE) of the Government of India and is the wholly owned subsidiary and overseas arm of Oil and Natural Gas Corporation Limited (ONGC).
- ONGC Videsh Limited comes under the administrative control of the Ministry of Petroleum and Natural Gas.
- The primary business of ONGC Videsh is to prospect for oil and gas acreages outside India, including exploration, development and production of oil and gas.
- ONGC Videsh is the second largest petroleum company of India, next only to its parent ONGC.
- ONGC Videsh produced about 27.3% of oil and 19.4% of oil and natural gas of India’s domestic production in 2021-22.
- ONGC Videsh owns Participating Interests in 32 oil and gas assets in 15 countries.