Sales from Russian oilfields unaffected: ONGC

Oil and Natural Gasoline Corp (ONGC) said on Thursday it did no longer foresee any disadvantage in selling its section of horrible from Russian oilfields or repatriating dividends from there within the new disadvantage.

“Per explain appropriate sanctions and removal of 5 Russian banks from SWIFT association, the corporate does no longer foresee any disadvantage in selling horrible oil or repatriating dividends as opposed to that scrutiny of enterprise transactions might maybe maybe presumably furthermore merely be higher than fashioned,” ONGC Videsh, the abroad arm of teach-trudge explorer, said in an emailed response to ET. “ONGC Videsh banks in Russia are no longer struggling from SWIFT decrease off as of now as per our recordsdata,” it added.

Oil costs rallied to $119 per barrel on Thursday on fears that Russian affords will in all probability be disrupted by the volley of Western sanctions which will be aimed at non-vitality sectors. Cautious financiers, insurers, and traders are steering away from Russian oil cargoes. “As of now, now we have not any longer confronted any disorders (in selling horrible),” ONGC said.

ONGC did no longer clearly say if it used to be rethinking its investment thought in Vostok, Russia’s massive arctic oil project. “Brooding in regards to the dynamic nature of the trend as a results of the Russia-Ukraine struggle, ONGC Videsh is conserving a conclude survey on the trend,” the corporate said on Vostok plans.

Sources suggested ET that Western sanctions would accept it nearly no longer in all probability for ONGC to raise capital for investment within the massive Vostok project. Trafigura, which purchased a 10% stake in Vostok reportedly for 7 billion euros in 2020, has now said or no longer it’s reviewing its investment within the project.

ONGC said it does no longer envisage any impact on the operations in any of its Russian projects and rouble depreciation will in all probability boost its profit. “Since oil costs are buck-denominated, the income in rouble terms will enhance in search for of rouble depreciation. Truly, with large opex/capex being rouble-denominated, the profit in rouble terms shall enhance disproportionately,” the corporate said. However when dividends are converted into greenbacks for repatriation, basic of the increases will in all probability be offset on account of rouble depreciation.

ONGC has stakes in three projects in Russia: 20% in Sakhalin, 26% in Vankorneft and 100% in Imperial.

BP, Shell, Exxon Mobil and Equinor have all said they thought to exit from Russian vitality projects. Exxon, the operator of Sakhalin, has said it might maybe maybe presumably exit the project. ONGC said it did no longer behold any quick impact on the operations of Sakhalin on account of Exxon’s exit.

Exxon owns a 30% stake in Sakhalin, Japan’s SODECO 20% and Russia’s teach-trudge Rosneft 30%.

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