Indian oil firms mulling buying a part of the $11 billion stake in Rosneft

Indian oil firms mulling buying a part of the $11 billion stake in Rosneft

Indian oil firms led by ONGC Videsh Ltd are mulling buying a part of the $11 billion stake that Russia is selling in its biggest oil firm Rosneft, Petroleum Minister Dharmendra Pradhan said.

Russia is looking at selling 19.5 per cent of state oil champion Rosneft OJSC, preferably to India and China. “Our companies are looking into the offer. They are mulling if they can take some of that equity. They are looking into it,” he told reporters here. Rosneft produces more crude oil than Exxon Mobil Corp. “Of course OVL is the company heading the discussions now. Others may join later,” he added.

India augmented it’s energy security as well as enhance its stature in the global political and economic arenas when this week an Indian consortium signed definitive agreement to acquire upto 23.9 per cent 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 consortium is led by Indian Oil Corporation (IOC) along with Oil India (OIL) and Bharat Petro Resources (BPRL), a 100% subsidiary of Bharat Petroleum Corporation (BPCL).

The stake acquired by OIL-led consortium is in addition to the 15 per cent interest picked up by ONGC Videsh Ltd in the Vankor oilfield for $1.268 billion. The deal is expected to close by September 2016.

Leave a Reply

Your email address will not be published.