Consortium led by OIL to buy 24% stake in Rosneft
Indian Consortium, led by Oil India Limited (OIL), along with, Indian Oil Corporation Limited (IOCL) and Bharat PetroResources Limited (BPRL), a 100% subsidiary of Bharat Petroleum Corporation Limited (BPCL), signed definitive agreement to acquire upto 23.9% shares from Rosneft Oil Company (Rosneft), NOC of Russia in JSC Vankorneft, a company organised under the law of Russian Federation which is the owner of Vankor and North Vankor Field licenses.
The acquisition is subject to relevant Board, Government and regulatory approvals and is expected to close by September 2016. The agreement was signed on Friday during the St. Petersburg International Economic Forum (SPIEF) held in St. Petersburg.
At present Rosneft Oil Company holds 85% shares while ONGC Videsh Ltd (through its subsidiary) holds 15% shares in JSC Vankorneft. Vankor field, located in East Siberia is Russia’s second largest field by production and accounts for around 4% of Russian production and in 2015 Vankor field produced 22 mln tons of oil and 8.71 BCM of gas.
It is the largest of the fields, discovered and commissioned in Russia during the last twenty five years and is located in the North of Eastern Siberia in Turukhansk District of the Krasnoyarsk Territory 142 km away from Igarka town. Recoverable resources of the Vankor field as of January 1st 2016 stood at 361 mt of oil and condensate and 88 bcm of gas.
The agreement take forward the shared vision of the Prime Minister Narendra Modi and the President of Russia Vladimir Putin to strengthen the India-Russia Partnership over the next decade, specially in the hydrocorbon sector.