The government has given its nod to ONGC Videsh Limited (OVL) for acquisition of 11 per cent stake in JSC Vankorneft from Rosneft Oil Company (Rosneft), the National Oil Company (NOC) of Russian Federation (Russia).
“The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval to an acquisition by ONGC Videsh Limited (OVL) for 11% stake in JSC Vankorneft from M/s Rosneft Oil Company (Rosneft), the National Oil Company (NOC) of Russian Federation (Russia),” Ministry of Petroleum & Natural Gas said in a statement.
Rosneft operates Vankor fields, with Vankorneft, its wholly owned subsidiary.
OVL will be paying an amount of USD 930 million for acquiring 11 per cent stake in Vankorneft.
The acquisition of stake in Vankorneft will provide 3.2 Million Metric Ton of Oil Equivalent (MMTOE) to OVL by 2017. It will also provide an opportunity to Indian public sector Oil and Gas companies to acquire new technologies from Rosneft. The acquisition is in line the ONGC’s stated objective of adding high quality international assets to India's Exploration and Production (E&P) portfolio and thereby augmenting India's energy security.
Recently, an Indian Consortium comprising of Oil India Limited (OIL), Indian Oil Corporation Limited (IOCL) and Bharat PetroResources Limited (BPRL) acquired 23.9 per cent stake in Vankorneft at a cost of USD 2020.35 million which will give them 6.56 MMTOE.
Earlier in May 2016, ONGC Videsh Ltd (OVL) completed the formalities on acquisition of 15 per cent stake in Vankorneft at a cost of USD 1.284 billion which gave OVL 4.11 MMTOE.