Indian cos to purchase 24% in Vankor oil block in Russia

Indian cos to purchase 24% in Vankor oil block in Russia

India and Russia have signed major Sales Purchase Agreement for acquisition of 23.9 per cent stake in Vankor oil block by an Indian Consortium of Oil India Ltd., Indian Oil and Bharat Petro Resources Ltd.( subsidiary of BPCL) with ROSNEFT.

Dharmendra Pradhan, Minister of State (Independent Charge) for Petroleum and Natural Gas, visited St Petersburg, Russia from June 16-17 to represent India at the St Petersburg International Economic Forum (SPIEF). SPIEF is the leading economic event of Russia, drawing participation of important political leaders and some of the largest companies and global business leaders.

The main feature of the visit was the signing of a Sales Purchase Agreement for acquisition of 23.9 per cent stake in Vankor oil block by an Indian Consortium of Oil India Ltd., Indian Oil and Bharat Petro Resources Ltd.( subsidiary of BPCL) with ROSNEFT, according to the statement of government. This follows acquisition of 15 per cent stake in Vankor by OVL for which all formalities were completed on May 2016.

On the first day of his visit (16 June), Pradhan had meetings with Igor Sechin, President of Rosneft, Leonid Mikhelson, CEO of Novatek and Alexey Miller CEO of Gazprom, the leading Russian oil and gas companies. He discussed broadening India-Russia cooperation in the hydrocarbon sector. The Minister briefed the CEOs on government’s recent policy announcements and investment opportunities in the hydrocarbon sector, including on the Hydrocarbon Exploration and Licensing Policy and Small Discovered fields bidding round.

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On the second day of visit, Pradhan met Alenxander Novak, Minister for Energy of Russia, Alexander Dyukov, CEO of Gazpromneft. It is understood that both ministers discussed the array of oil and gas relations between India-Russia and expressed satisfaction on the ongoing cooperation between the two countries in the hydrocarbon sector. Both Ministers agreed that cooperation in the hydrocarbon sector was one of the key areas of the time tested and Special and Privileged Strategic Partnership between India and Russia, as per government’s statement.

The two Ministers were satisfied on the conclusion of all formalities relating to the acquisition of 15% stake by ONGC Videsh Ltd (OVL) in Vankorneft, a subsidiary of Rosneft of Russia.

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