Page 4 - AsianOil Week 36 2021

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Indian firms eye Arctic LNG 2 stake

FINANCE & TWO Indian companies, Petronet LNG and energy mix, including LNG imports. Russia,
INVESTMENT ONGC Videsh Ltd (OVL), are reportedly in for its part, is seeking to expand its share
discussions about buying a stake in Russia’s Arc- of the LNG export market amid growing
tic LNG 2 project, which is being developed by competition.
Novatek. The first Arctic LNG 2 liquefaction train is
The talks are centred on a 9.9% stake in the due to enter service in 2023, with the project set
liquefaction project, Bloomberg reported this to reach its full nameplate capacity of 19.8mn
week, citing a member of the Indian delega- tonnes per year (tpy) of the super-chilled fuel in
tion to Moscow, who is involved in the nego- 2025. Currently, Novatek owns 60% in the $11bn
tiations but spoke on condition of anonymity. project, while TotalEnergies, China National
No final decisions are reported to have been Petroleum Corp. (CNPC) and CNOOC Ltd
made as yet. each have 10% stakes and a Japanese consortium
None of the companies have commented pub- holds the remaining 10%.
licly on the matter but Indian Minister of Petroleum Novatek, which is Russia’s largest LNG
and Natural Gas Hardeep Singh Puri told reporters producer, had initially expected European,
at a briefing in Moscow that Indian firms were talk- Russian and Asian lenders each to provide a
ing to Novatek and that “everything is on the table”. third of the financing for Arctic LNG 2. How-
Puri is also reported to have met with Novatek’s ever, it has faced issues obtaining loans for the
CEO, Leonid Mikhelson, during an Indian energy project from European lenders, according to
delegation’s visit to Vladivostok last week for the comments made by Mikhelson that were cited
Eastern Economic Forum. by Bloomberg. As a result, Russian financing
Reports of the discussions come as may end up accounting for around 60% of the
India works to boost the share of gas in its required amount, he said.™

ONGC Videsh may join RSSD JV

FINANCE & ONGC Videsh, the overseas investment arm of India’s The sources, who spoke on condition of
INVESTMENT state-owned Oil & Natural Gas Corp. (ONGC), may anonymity, stressed that the talks between
seek to acquire a minority stake in RSSD, the joint Woodside and ONGC Videsh might not result
venture set up to explore and develop Sangomar, an in a sale. The proposed transaction is still under
oil-bearing block offshore Senegal. discussion, and Woodside may entertain offers
Sources familiar with the matter told from other potential investors, they said. They
Bloomberg earlier this week that ONGC Videsh did not say whether any other companies had
was eyeing a stake of 20-40% in RSSD. They did expressed interest in joining RSSD.
not say how much the Indian company might Woodside became the majority shareholder
pay for the asset but reported that Woodside in the joint venture last year, after Cairn Energy
Energy, the Australian company that is serving (UK) announced plans to sell its minority stake
as operator of the Sangomar project, had teamed to Russia’s Lukoil. It pre-empted that deal,
up with Jefferies Financial Group Inc. (US) to thereby bringing its holdings up from 35% to
discuss the deal. about 75%. The only other shareholder in the

P4 www. NEWSBASE .com Week 36 09•September•2021