The Sakhalin-I fields, where ONGC Videsh Ltd has a 20% stake, began producing oil and gas earlier this month.
Petroleum minister Mani Shankar Aiyar said OVL had given loans to Rosneft to fund the Russian companys 20% stake in the project as well as paying for its own 20% share of development costs.
SHIPPING IT FROM RUSSIA
| Sakhalin-I fields, where OVL has a 20% stake, began producing oil and gas earlier this month |
The 20% share entitles OVL to 50,000 barrels per day from peak output of 2,50,000 bpd
Gas production will rise to 200 million standard cubic feet per day by next year
India is seeking stakes in overseas fields like Sakhalin to feed its 7% economic growth.
OVL managing director RS Butola said the field would initially produce 23,000 bpd and about 58-59 million standard cubic feet of gas per day.
Oil production would rise to 50,000 bpd by April next and hit the peak level of 2,50,000 bpd by 2006-end. Gas production will also rise to 200 million standard cubic feet per day by next year, he added.
Total spending on Sakhalin-I has so far exceeded $4 billion, Stephen Terni, president of Exxon Neftegas Ltd, the projects operator, said.
OVL had purchased a 20% stake in Sakhalin-I project for $1.7 billion in 2001. In November 2003, India had approved $1.1 billion of additional investment in Sakhalin-I.
OVL plans to ship around 7,00,000 barrels of oil from Sakhalin-I to India every 70 days from April 2006. This would be Indias first shipment of equity crude oil from the Russian fields, officials said.