The Cabinet in February 2001 allowed OVL to acquire 20 percent stake held by Rosneft in Sakhalin-I for $1.74 billion. In November last, the Empowered Committee of Secretaries asked OVL to re-evaluate its investment at Sakhalin-I using outside consultants. OVl hired investment bank JP Morgan London; UK-based energy advisor Gaffney, Cline and Associates; and the US law firm of Akin, Gumb and Strauss to rework the investment plan in Sakhalin-I.
The three also helped OVL in due diligence of the Russian field before acquiring a stake. The three consultants are believed to have advised OVL to pay an increased cost for a stake in the field, considered to have the world's richest oil and natural gas reserves.
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