Dharmendra Pradhan: Oil India to exit Russian oil block

New Delhi, July 4 - Neftegaz.RU. Oil India Ltd (OIL) is started the process to sell its 50% stake in Tungolsky License-61 in Russia. In 2014 it was the 1st investment in Russia by Oil India, the 2nd largest government-owned exploration and production company in India.

The $85 million investment consisted of a $35 million cash payment, $45 million of exploration and development expenditure on Licence 61 and a $5 million performance bonus.

Tungolsky Licence 61 is located on the east side of the Ob River in the least explored oil bearing region of the Tomsk Oblast. The large 4,991 km² Licence contains 7 oil fields and over 25 identified prospects and leads.

“OIL has initiated the sale process of Project License-61 in Russia. The performance of the asset has not been as expected,” Indian Minister for Petroleum and Natural Gas, Dharmendra Pradhan, said in response to a query on the same in the Rajya Sabha.

“No decision has been taken on OIL’s asset in the US,” Pradhan added.

Pradhan also said OIL had called back its executives from Venezuela because there was a significant reduction in project activities due to security reasons. He said one OIL executive has now been deputed back to Venezuela.