India's Largest PSUs ONGC buys 15% stake in Russia's 2nd-largest oil field from Rosneft
India's largest PSUs Oil and Natural Gas Corporation (ONGC)
has bought a 15% stake in Russia's second-largest oil field Vankor from
Rosneft for about 1.35 billion US dollars.
ONGC Videsh Ltd (OVL) the overseas investment arm of ONGC
has signed agreements to buy 15 % stake in the Vankor oil field located in East
The agreement to buy stake in Vankor was signed by the OVL
Managing Director Narendra Verma and Chairman of Rosneft Management Board Igor
Sechin in Vladivostok.
Under the terms of the agreement OVL will get two seats on
the Board of Directors of Vankor, a subsidiary of Rosneft that operates the
The 15 % stake Vankor oil field will give OVL about 3.5
million metric tonnes of oil a year of its total 2.5 billion recoverable
reserves barrels (or 500 million tonnes).
Rosneft will retain full control of infrastructure of the
Presently, Rosneft (Russian national oil company) holds 100
per cent stake in Vankor which started production in 2009.
With this stake acquisition Rosneft, stake will come down to
The stake acquisition is subject to relevant board, Russian
government and Regulatory approvals and is expected to be completed by
This is fourth biggest acquisition by OVL. It already has a
20 per cent stake in the Sakhalin-1 oil and gas field located off Russia's far
eastern coast and also owns Imperial Energy which has fields in Siberia.