ONGC Videsh Ltd (OVL), along with Indian Oil Corporation (IOC), Oil India (OIL) and Bharat Petroleum Corporation Limited (BPCL), is in talks to buy about 35% additional stake in Russia’s Vankor oil field in Siberia for close to $3 billion.<\/p>\n
OVL, the overseas arm of the state-owned Oil and Natural Gas Corp (ONGC), had on September 4 last year agreed to buy 15% stake in Russia’s second-biggest oil field of Vankor from Rosneft for $1.26 billion.<\/p>\n
While the 15% deal is yet to be concluded, Rosneft is now agreeable to selling a total of 49.9% in Vankor to Indian firms, an official said.<\/p>\n
Of the 49.9% stake offered, OVL will take 26% (including 15% agreed in September last year) and the rest 23.9% will be split equally between IOC, OIL and Bharat PetroResources Ltd (BPRL), a unit of BPCL.<\/p>\n
An MoU for this may be signed when Rosneft boss Igor Sechin will visit India next week, he said, adding that the additional 34.9% stake may come for $2.9 billion.<\/p>\n
A separate pact to formalise the December MoU for IOC, OIL and BRPL buying a 29% stake in the Taas-Yuriakh oil field in East Siberia may also be inked during the visit.<\/p>\n
The stake in Taas-Yuriakh, which is expected to produce 5 million tonnes of oil annually, may cost around $1 billion, going by Rosneft’s deal last year to sell 20% stake in it to British Petroleum for $750 million.<\/p>\n
The official said originally OVL was negotiating to buy 25% stake in Vankorneft, the developer of the Vankor oil and gas condensate field in Turukhansky district of Krasnoyak Territory in Russia.<\/p>\n
But Rosneft was willing to give no more than 10%. A 10% stake would not have given OVL a position on board of Vankorneft and so, the Indian firm pressed hard and got a higher 15% interest with right to nominate two board members.<\/p>\n
Vankor has recoverable reserves of 2.5 billion barrels. The 15% stake guarantees OVL 3.3 million tonnes a year of oil.<\/p>\n
Rosneft, Russia’s national oil company, held 100% stake in Vankorneft. Acquisition by OVL is subject to relevant board, government and regulatory approvals and is expected to be completed by mid-2016, he said.<\/p>\n
The 15% stake buy in Vankor was the fourth-biggest acquisition by OVL. In 2013, it had paid $4.12 billion for a 16% stake in Mozambique’s offshore Rovuma Area 1, which holds as much as 75 trillion cubic feet of gas reserves.<\/p>\n
In 2009, it had bought Russia-focussed Imperial Energy for $2.1 billion. Prior to that, it had in 2001 paid $1.7 billion for a 20% interest in the Sakhalin-1 oil and gas field off Russia’s far eastern coast.<\/p>\n
Vankor is Rosneft’s (and Russia’s) second-largest field by production and accounts for 4% of Russian output. It produces around 4,42,000 barrels of crude oil per day.<\/p>\n","protected":false},"excerpt":{"rendered":"
ONGC Videsh Ltd (OVL), along with Indian Oil Corporation (IOC), Oil India (OIL) and Bharat Petroleum Corporation Limited (BPCL), is in talks to buy about 35% additional stake in Russia’s Vankor oil field in Siberia for close to $3 billion. OVL, the overseas arm of the state-owned Oil and Natural Gas Corp (ONGC), had on September 4 last year agreed to buy 15% stake in Russia’s second-biggest oil field of Vankor from Rosneft for $1.26 billion. While the 15% deal is yet to be concluded, Rosneft is now agreeable to selling a total of 49.9% in Vankor to Indian firms, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133],"tags":[],"class_list":["post-58398","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/58398","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=58398"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/58398\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=58398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=58398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=58398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}