The government is preparing to buy not only oil from Russia, but also stake in the oil companies there.
Plan to buy stake in Russian energy companies.
European and American companies are selling their stake in Russian energy companies in protest against the attack on Ukraine. The Government of India asked the country’s energy companies – ONGC, BPCL, HPCL to consider buying a stake in the Russian company.
Attack on Ukraine (Russia-Ukraine crisisDue to this, all kinds of sanctions have been imposed on Russia. European companies are selling what they have invested in Russia. In such a situation, the Modi government has asked the public sector energy companies to stake in Russian oil companies ,India Russia relation) buy. According to a Reuters report, under the sanctions, European oil major BP wants to sell its stake in Russian oil company Rosneft. The government has appealed to state run energy companies to buy this stake. BP holds 19.75 per cent stake in Rosneft. The Petroleum Ministry had last week expressed its views in this regard with ONGC Videsh Limited, Indian Oil Corporation, Bharat Petroleum Resource Limited, Hindustan Petroleum’s subsidiary Prize Petroleum Limited, Oil India and GAIL India. The Petroleum Ministry has not responded to the mail sent by Reuters in this regard.
Western countries have opposed Russia’s action on Ukraine. However, India has never made any statement against Russia. India imports 85 percent of its oil requirement. India needs 5 million barrels of oil per day. Every day 60 million retail users reach the petrol pump.
BP CEO met Puri
In the month of March, Bernard Looney, CEO of European oil giant BP, met Petroleum Minister Hardeep Singh Puri. After this meeting, the discussion of buying a stake in Rosneft is in full swing. BP has refused to comment on this news.
Talk of buying stake in Sakhalin Project-1 as well
According to the report, the oil ministry had asked Oil and Natural Gas Corporation’s overseas investment arm OVL to consider buying Exxon Mobil Corp’s 30 per cent stake in the Sakhalin-1 project. Exxon Mobil Corporation is an American multinational oil and gas company. Sakhalin-1 is located in the Far East of Russia. From here oil is exported to countries like America, South Korea, Australia, Japan and Thailand. 2.73 lakh barrels of oil are produced here on a daily basis. On March 1, Exxon said it would pull out of Russia altogether and sell its $4 billion investment.
OVL holds 26% stake in Vankorneft
ONGC Videsh Limited holds 26 per cent stake in Vankorneft. It is located in the West Siberian Field. Apart from this, a consortium of Oil India, Indian Oil Corporation, BPRL and a unit of BPCL holds 23.9 per cent stake in Vankorneft. The consortium also holds a 29.9 per cent stake in Taas-Yuryakh in East Siberia.
Preparing to Buy at a Discount
It is also reported quoting a source that Indian companies are considering buying Russian assets at a discount. It is being seen as a distress cell where there is a lot of risk.