India’s Cabinet Committee on Economic Affairs (CCEA) has approved ONGC Videsh Ltd’s additional investment of USD 1.07 billion in the Sakhlain-I oil and gas field in Russia. The investment, by OVL, would be over and above USD 1.7 billion already approved, Finance Minister P. Chidambaram said after the CCEA meeting. OVL, the overseas arm of state-run Oil and Natural Gas Corp. (ONGC), will raise the additional money from its own resources. Sakhalin-I project will begin natural gas production from the third quarter of 2005. Crude oil production from the offshore fields will also commence from January 2006 with initial production of 50,000 barrels per day. Crude oil production from the fields will rise to 250,000 barrels by the first quarter of 2007, official sources said. India’s share in gas production would be 5-8 million standard cubic metres per day, and New Delhi would also be entitled to 20% of the crude oil production.
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