LUKoil in talks with ONGC in Caspian development

LUKoil, Russia's leading oil company, is in talks with India's ONGC to jointly develop an offshore North Caspian oil field, according to a report in Russian daily, The Moscow Times.
The Severny deposit contains as much as 600 mm metric tons of crude oil in recoverable reserves. LUKoil has invested about $ 200 mm in Caspian exploration during the past few years and recently launched a drilling unit, but the paper reports that the Indian company is reluctant to join the project because of its high cost.

ONGC's profit rose 2.87 % bn rupees ($ 638 mm) in the full year ended in March 1999.