"The deal which was to have been signed today has been postponed to February 10 since Russian government had requested for more time to get the decision ratified," petroleum minister Ram Naik told reporters here.The deal would be signed by Naik and OVL managing director Atul Chandra.

The 1.7 billion dollar investment would entail acquiring half of Rosneft's 40 per cent stake in Sakhalin-I, which is likley to be developed by 2005, Naik said adding the agreement would ensure an equity oil of about 2-4 million tonnes besides 5-8 million cubic metre per day of gas.

While Rosneft-Sakhalin Morneftegaz combine holds 40 per cent stake in the around four billion dollar project, Japanese Sodeco and ExxonMobil of US have 30 per cent each. Exploration is likely to be completed by middle of next year and development would begin soon afterwards. The Russian Far East Sakhalin oil field is estimated to have 2-8 billion barrels of oil reserves, Mr Naik added.

Mr Chandra said payments to Rosfnet would be spread over the next five years with the first payout expected in next three months. Together with the 1.4 billion dollar price, the final investment also includes a premium of 225 million dollars and 92.3 million dollar for past expenditure incurred on exploration of oil field, Mr Chandra said.

(PTI)