Oil production from the Exxon Mobil-operated Sakhalin-1 project in Russia's Far East will remain constrained for "a couple of months" because of insurance problems, according to the Indian company that holds a 20% stake in the project. Alok Gupta, managing director of ONGC Videsh Ltd. (OVL), said protection and indemnity clubs-which provide insurance to their shipowner members-have declined to extend coverage for the ice-class vessels that ship oil from Sakhalin-1. "This situation is going to be normalized over the next two-three weeks, as we are onding out the alternative measures, " Gupta said during a recent conference call with analysts. OVL is owned by India's Oil and Natural Gas Corp. (ONGC).
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