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While an FID on Arctic
LNG-2 was taken two
years ago, its partners
are still seeking $11bn
in external financing.
India eyes stakes in Vostok Oil, Arctic LNG-2
INVESTMENT THREE Indian companies are reportedly inter- the largest fields at Vostok Oil.
ested in becoming the first strategic investors in Analysts at BCS Global Markets (BCS GM)
Rosneft’s flagship Vostok Oil project, and Indian commented that the three Indian firms would
investors are also eyeing an interest in Novatek’s represent the first strategic buyers to join Vostok
Arctic LNG-2 project. Oil. Rosneft has already sold interests of 10%,
India’s Mint newspaper reported last week, 5% and 5% respectively to commodity traders At Arctic LNG-2,
citing sources, that ONGC Videsh Ltd (OVL), Trafigura, Vitol and Mercantile & Maritime.
Indian Oil (IOC) and Oil India (OIL) were con- BP, Rosneft’s close upstream partner, might also Novatek has
sidering a joint investment in Vostok Oil, which come on board, sources tell NewsBase.
consists of several large oil and gas fields in Rus- At Arctic LNG-2, Novatek has already sold a already sold
sia’s remote north. 40% stake to France’s TotalEnergies and Chinese
“The negotiations are at a preliminary stage and Japanese investors. It has said it is interested a 40% stake
... the degree of participation will depend on the in divesting a further 9.9% but no more than this, to France’s
assessment,” Mint quoted one source as saying. as it wants to maintain majority control over the
A technical assessment of 30 of Vostok Oil’s 52 project. TotalEnergies
licence areas is underway, and if the reserves are Arctic LNG-2 is due on stream in 2023 and
the same as the operator’s data, a commercial once its three trains are working at full capacity, it and Chinese
assessment will begin. will produce almost 20mn tonnes per year (tpy)
The report is consistent with comments by of LNG. But while a final investment decision and Japanese
Rosneft over the years that it was interested in (FID) on the project was taken two years ago, its investors.
getting Indian investors to come on board at partners are still seeking some $11bn in external
Vostok Oil. India is already a major market for financing to carry the development through to
Russian oil, and Rosneft has downstream inter- completion.
ests there – namely the 400,000 barrel per day Mint did not say which Indian companies
(bpd) Vadinar oil refinery in the country’s west. were interested in entering Arctic LNG-2, but
OVL, OIL and IOC, as well as another said both the LNG project and Vostok Oil were
Indian company called Bharat Petroresources, considered priority investment opportunities for
already have a 49.9% stake in Vankor, one of India. No price details were disclosed.
Week 47 26•November•2021 www. NEWSBASE .com P9
