ONGC Warns Sakhalin-1 Will Miss Western Support

India’s ONGC is cautious of Sakhalin-1 production forecasts because the project was heavily reliant on the support of Western companies that have now left the market. ONGC took a stake in the project under new Russian ownership.

• "Sakhalin used to give us about 2 million tonnes of oil a year. As I said, we have information about a resumption of production. However, it will take a lot of resources to get to the plateau. And going forward, these resources will be limited due to the fact that much of it was provided by Western service providers such as Schlumberger, Weatherford, Baker Hughes or Parker Drilling. Now, the maintenance of production itself could become a challenge," ONGC Videsh head Nirmal Kumar said.
• "We will consider ourselves very lucky if we manage to reach 1.5 million tonnes by the end of this fiscal year and this is our goal for this fiscal year," he said.