Indian Oil, Oil and BPRL signs agreement with Rosneft of Russia

Indian Oil, Oil and BPRL signs agreement with Rosneft of Russia

An Indian consortium led by Indian Oil Corporation Limited (IndianOil), Oil India Limited (OIL) and Bharat Petro Resources Limited (BPRL) signed the definitive agreement to acquire up to 23.9% shares from Rosneft Oil Company, NOC of Russia in JSC Vankorneft.

Rosneft Oil Company is a company organised under the law of the Russian Federation, which is the owner of Vankor and North Vankor Field licences.

However, the acquisition is subject to relevant Board, government and regulatory approvals and is expected to close by September 2016.

Petroleum minister Dharmendra Pradhan and minister of Energy, Russia Alexander Novak were present during the sign of the agreement on 17 June 2016, precisely when Pradhan visited St. Petersburg International Economic Forum (SPIEF) held at St. Petersburg.

Also, the agreement takes forward the vision of the country’s Prime Minister Narendra Modi, and Russian President Vladimir Putin, to strengthen the India-Russia partnership over the next decade, especially in the hydrocarbons sector.

Presently 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 currently producing oil at a level of approximately 422,000 bopd.

It is the largest of the fields, discovered and commissioned in Russia during the last twenty five years. With the completion of the Vankor deal, IndianOil’s equity oil portfolio will go up by 1.6 MMT per annum.

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