ONGC fails to get bids in its tender to sell Russian oil: Report

By Nidhi Verma

NEW DELHI (Reuters) – India’s ONGC Videsh failed to get bids in its tender to sell 700,000 barrels of Russian sokol crude in a growing backlash against Moscow for its invasion of Ukraine, sources familiar with the matter said.

This was the first tender by ONGC Videsh, since the war in Ukraine began on Feb. 24.

ONGC Videsh, the overseas investment arm of India’s top explorer Oil and Natural Gas Crop, has a 20% stake in Russia’s Sakhalin-1 project and sells its share of oil through tenders.

The tender for the sale of May loading cargo closed on Thursday.

Initially 11 parties including oil majors had shown interest in buying sokol oil but later “sent a regret”, the sources said.

ONGC Videsh did not respond to a Reuters email seeking comment.

Two sources said ONGC Videsh has an option to bring the cargo to India for processing at refineries owned by its subsidiary Hindustan Petroleum Corp and Mangalore Refinery and Petrochemicals Ltd.

The United States banned imports of Moscow’s oil and gas on Tuesday, while some Western oil companies, including Shell, have said they will stop buying Russian oil.

No Indian company has publicly withdrawn from Russia and New Delhi has declined to condemn Moscow’s invasion of Ukraine despite pressure from the United States to do so.

The Kremlin describes its actions in Ukraine as a “special operation” to disarm its neighbour.

Russian firms have encountered problems in securing financing for April contracts to sell crude and oil products, but the situation can be resolved, Deputy Prime Minister Alexander Novak was quoted as saying by Interfax news agency on Thursday.

(Reporting by Nidhi Verma; Editing by Emelia Sithole-Matarise)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor