The Indian Consortium, led by Oil India Limited (OIL), along with, Indian Oil Corporation Limited (IOCL) and Bharat PetroResources Limited (BPRL), a 100% subsidiary of Bharat Petroleum Corporation Limited (BPCL), signed definitive agreement to acquire upto 23.9% 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 acquisition is subject to relevant Board, Government and regulatory approvals and is expected to close by September 2016.
The agreement was signed on 17 June 2016 during the St. Petersburg International Economic Forum (SPIEF) held in St. Petersburg in the presence of Dharmendra Pradhan, Hon. Minister of State-Independent Charge, Ministry of Petroleum and Natural Gas, Government of India, and Alexander Novak, Minister of Energy, Russia, by B Ashok, Chairman, IndianOil; Biswajit Roy, Director (HR & BD), OIL; D Rajkumar, Managing Director, BPRL; and Igor I Sechin, President, Chairman of the Management Board, Vice-Chairman of Board of Directors of Rosneft.
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 and is located in the North of Eastern Siberia in Turukhansk District of the Krasnoyarsk Territory 142 km away from Igarka town. The recoverable resources of the Vankor field as of 01.01.2016 stood at 361 million tonnes of oil and condensate and 138 bcm of gas. With the closure of the Vankor deal, IndianOil’s equity oil portfolio will go up by 1.6 MMT per annum.
The agreement takes forward the shared vision of the Hon’ble Prime Minister of India, Narendra Modi, and the Hon’ble President of Russia, Vladimir Putin, to strengthen the India-Russia partnership over the next decade, especially in the hydrocarbons sector. Commenting on the occasion, Dharmendra Pradhan, Hon. Minister of State-Independent Charge, Ministry of Petroleum & Natural Gas, Government of India, said, “The agreement will further strengthen the long-standing relationship between Indian PSUs and Rosneft, paving the way for an enriching journey together. The acquisitions also have significant strategic importance to India, both in terms of augmenting India’s energy security as well as enhancing India’s stature in the global political and economic arenas.” Marquis Haynes JerseyShare This