ONGC in the race for Russia’s Arctic oil

Russia’s natural resources minister Yuri Trutnev said on Tuesday that ONGC was the only foreign oil company to place a bid for Russia’s giant Arctic Trebs and Titov oil deposits.

“The deposits are classified as strategic, and so it is up to a government commission to decide whether [ONGC] can participate alone, but I doubt that will be the case. I would be surprised,” Trutnev told reporters.

On Monday, Nord Imperial, the Russian subsidiary of ONGC, submitted its bid application for the fields to Rosnedra, the government agency responsible for subsoil licences.

Trutnev confirmed that oil firms Lukoil, Russia’s No.2 oil producer, TNK-BP, half-controlled by BP, Gazprom Neft, Surgutneftegaz, and mid-sized firm Bashneft also placed bids.

The Trebs and Titov deposits, holding an estimated 200 million tonnes of oil reserves, will be sold at a government auction on December 2.

Rosneft, the country’s largest oil producer, did not bid, but the firm’s new President, Eduard Khudaynatov, said it would consider joining the project if a potential partner wins the bid, Platts reported.