Page 11 - AsianOil Week 47 2021

AsianOil SOUTH ASIA AsianOil

India eyes stakes in

Vostok Oil, Arctic LNG-2

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

SOCAR plans to invest in Pakistan

FINANCE & SOCAR plans to invest $1bn in Pakistan’s energy “Azerbaijan has signed agreements with
INVESTMENT sector, according to the Azerbaijani ambassador the EU and other countries, and Pakistan’s
to Islamabad Khazar Farhadov. close economic cooperation with our country
“In general, other Azerbaijani companies are will ensure easy access of Pakistani products
also interested in establishing joint ventures with to Central Asian and European markets,”
Pakistani partners and investing in Pakistan, as Farhadov added. The ambassador said that
they see the country as a potential market for Pakistan and Azerbaijan are working on a
business and investment,” Farhadov said during preferential agreement, which will reduce
a visit to the Chamber of Commerce in Islama- customs tariffs and improve bilateral trade
bad (ICCI), according to Pakistan Observer. between the two countries. He also believes
The ambassador said that the leaderships of that Pakistani companies, including pharma
Azerbaijan and Pakistan are making efforts to companies, have a good potential to open pro-
expand economic cooperation, and both coun- duction facilities in Azerbaijan.
tries should pay attention to the development President ICCI Muhammad Shakeel
of direct relations between the private sectors Munir said that the bilateral trade of around
to improve bilateral trade relations. He said the $16mn-17mn between Pakistan and Azer-
Azerbaijani embassy is ready to organize online baijan was quite less than the “actual poten-
meetings between companies of the two coun- tial” of both countries and said that more
tries, after which the exchange of trade delega- efforts should be made from both sides to
tions may take place. improve it.™

Week 47 26•November•2021 www. NEWSBASE .com P11