Oil and Natural Gas Corporation Limited (NSEI:ONGC) planned to take a stake in the new Russian entity that will manage the Sakhalin 1 project in the far east as it seeks to retain a 20% share in the asset, three sources familiar with the matter said. Russian President Vladimir Putin earlier this month issued a decree to establish a new operator for the ExxonMobil-led project and authorised the Kremlin to decide whether foreign shareholders could retain stakes in Sakhalin 1. "ONGC Videsh will protect its share in the project, which means it will take a stake in the new entity," said one of the sources. ONGC holds a stake in the project through its overseas investment arm ONGC Videsh.

The new Russian entity, managed by Public Joint Stock Company Rosneft Oil Company (LSE:ROSN) subsidiary Sakhalinmorneftegaz-shelf, will own investors' rights in Sakhalin 1. Foreign shareholders have one month to decide on retaining stakes in the project. Sources said ONGC would consider taking additional stake in the project if that makes "commercial sense". The sources declined to be named citing confidentiality and ONGC Videsh did not respond to Reuters' email seeking comments.