— Photo: R. Eswarraj

WITH LOVE FROM RUSSIA: V.I. Trubnikov Ambassador of the Russian Federation handing over a sample of Sakhalin-1 crude to the Petroleum Minister Murli Deora in Mangalore on Saturday.

MANGALORE: The first shipment of India's equity oil from Sakhalin-I project for processing at the Mangalore Refinery and Petrochemicals Limited (MRPL), an ONGC subsidiary, reinforced the friendship between Russia and India, Petroleum and Natural Gas Minister Murli Deorasaid on Saturday.

He was receiving the first decanter of crude from Vyacheslav Ivanovich Trubnikov, Ambassor of the Russian Federation, at the MRPL oil jetty at the New Mangalore Port. Earlier Popov Vladimir, captain of m.v.Viktor Titov, handed over the decanter to the Ambassador.

The tanker, which arrived on Friday morning, brought the crude in 16 days.

Mr. Deora also dedicated the isomerisation and mixed xylene units of the MRPL to the nation.

"From Sakhalin to Mangalore, a new silk route, a route of more than 5,700 nautical miles, is the new route of integration — the route integrates one of the largest producing centres with one of the largest consumer centres. I wish to put on record my appreciation to ONGC, which was pivotal in this integration," he said.

Mr. Deora said there were many takers for Sakhalin crude in the global and Indian market. But it was the MRPL's strength which led the ONGC to bring this oil to Mangalore. "This is yet another definition of integration, which ONGC has scripted — own equity oil in its own refinery."

R. S. Butola, Managing Director, ONGC Videsh Limited (OVL), said the investment of $2.7 billion in the Sakhalin-I project was the single largest investment by any Indian company abroad. OVL did it when global oil majors were shying away from investing there.

Some even criticised OVL for acquiring a 20 per cent equity in the project. Its share was likely to be 50,000 barrels of oil a day at peak production.

Mr. Butola said Russia's oil production now stood at 9.45 million barrels a day. Diversifying its market, the country was looking at India's buying potential. OVL now had 25 oil and gas projects in 15 countries. Oil and gas production in Sakhalin-I began on a limited scale in October 2005. Full capacity production was likely to be reached by early 2007.

Only the beginning

Mr. Trubnikov said Russia was confident that India's investment in Sakhalin-I was only the beginning of a long journey between the countries.

Petroleum Secretary M. S. Srinivasan said OVL would expand its operations to 20 countries in the next three years.

M. Veerappa Moily, Chairman, Administrative Reforms Commission, said Mangalore would attract Rs.1,00,000 crore-investment in the next few years.

ONGC Chairman and Managing Director R. S. Sharma praised oil workers in the Sakhalin-I field who managed in weather conditions of minus 40 degree Celsius.

R. Rajamani, MRPL Managing Director, said the company would start processing Sakhalin crude now.

B. Nagaraja Shetty, Karnataka Minister for Fisheries and Muzarai, predicted that Mangalore would develop faster than Bangalore in the next five years.

The State Government was keen on developing the New Mangalore Port numero uno in the country.

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