ONGC sees amicable deal with Rosneft at 10% of Sakhalin-1 budget

MOSCOW, Aug 3 (PRIME) -- An out-of-court settlement of Russian oil major Rosneft’s 89 billion ruble suit against the companies comprising the Sakhalin-1 consortium may amount to less than 10% of annual budget of the project, India’s ONGC said in a statement on Friday.

“The sum under discussion amounts to less than 10% of an average annual budget of the consortium,” the statement said.

In late July, the Arbitration Court of the Sakhalin Region registered an 89 billion ruble suit of Rosneft against companies that participate in the Sakhalin-1 project demanding a return of what the company sees as illegal enrichment, and interest for the use of money between July 10, 2015 and May 31, 2018. The Sakhalin-1 project develops the Orkutun-Dagi, Chaivo and Odoptu offshore deposits, while Rosneft operates at the northern part of the Chaivo field.

Exxon Neftegas Limited and Sakhalin Oil and Gas Development, part of Japan’s Sodeco, own 30% each in Sakhalin-1, ONGC Videsh Limited owns 20%, part of Rosneft Sakhalinmorneftegaz-shelf owns 11.5%, and RN-Astra 8.5%. They were listed as the co-defendants under the suit. Preliminary hearing was scheduled for September 10.

(63.1358 rubles – U.S. $1)

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