The restoration of ONGC Videsh’s stake in Russian oil field Sakhalin-1 is marred in confusion as it is yet to get a formal communiqué on its rights over the field that was nationalised by Russian President Vladimir Putin in July.

India has been pressing for the restoration of its stake in the project. Now that the gas field has resumed production and the G7 price cap of $60 a barrel on seaborne Russian oil has kicked in, India is expected to intensify efforts to restore its claim to the field as the country has emerged a key buyer of Ural crude.

Some analysts have suggested that the country could use its buying power as a bargaining chip at a time Russia needs to sell its oil.

Industry sources said the ONGC subsidiary is awaiting formal communication from the Russian authorities. However, some reports quoting the Russian wire services Interfax have indicated that Moscow has restored the stake.

The agency said the Russian government has approved the participation of Japan’s Sakhalin Oil and Gas Development Co., Ltd. (Sodeco) and India’s ONGC Videsh Limited as the new Russian operator of the Sakhalin-1 project, according to the corresponding instructions issued by Prime Minister Mikhail Mishustin.

According to the instructions, Sodeco has been informed of its pact to assume ownership of 30 per cent in Russian Sakhalin-1 LLC and ONGC Videsh is to assume ownership of 20 per cent in the project under the same terms.

The Japanese firm Sodeco is the new operator of the project, according to the production sharing agreement (PSA), it added.

Putin issued a decree in July confiscating the ownership of the project after Exxon’s pullout following the Ukraine crisis.