ONGC eyes Rosneft joint bid for Russia fields: report

ONGC eyes Rosneft joint bid for Russia fields: report

Moscow: State-run Oil and Natural Gas Corp (ONGC) has proposed to Russian major Rosneft that the two jointly bid for strategic Trebs and Titov fields in the Arctic north, Vedomosti reported on Tuesday.

Rosneft’s spokesman declined to comment on the report but a source in the company told Reuters there have been no specific talks with ONGC concerning the highly coveted deposits, the largest to be put up for auction in the last five years.

“Indian companies have being interested in joint projects with Rosneft for a long time and we are always communicating, but no discussions have reached an advanced stage," he said.

Rosneft’s vice president for finance and investments said on a conference call on the firm’s second quarter results that Rosneft had the resources to bid alone for the fields, which the Russian government plans to auction this year at a starting price of 17.5 billion roubles ($586 million).

ONGC has already expressed interest in the oil and gas fields and is now looking into the possibility of bidding jointly with state-controlled Rosneft, Russia’s biggest oil producer, Vedomosti business daily reported, citing two sources close to both companies.

ONGC and Rosneft are partners in Russia’s Far East Sakhalin I project, each with a 20% stake in the operating company.

Sakhalin 1 has been producing oil for several years and reached peak production of 11.2 million tonnes in 2007. Current output is 155,000 barrels per day (bpd), and is expected to touch 200,000 bpd in the next calendar year.