Cabinet nod for $3.2 billion Rosneft deal

September 28, 2016 11:11 pm | Updated November 01, 2016 09:34 pm IST - NEW DELHI:

The CCEA approved the acquisition of a 23.9 per cent stake in JSC Vankorneft and 29.9 per cent in LLC Taas-Yuryakh from Rosneft Oil Company (Rosneft), Russia’s national oil company, by a consortium comprising Oil India Limited, Indian Oil Corporation Limited and Bharat Petro Resources Ltd.

“The acquisition of stake in Vankorneft will provide 6.56 million metric tonnes of oil equivalent (MMTOE) and 29.9 per cent stake in Taas-Yuryakh will provide 0.5 MMTOE initially and 1.5 MMTOE by 2019,” the Centre said in a statement.

The consortium will pay $2,020 million for the Vankorneft stake and $1,242 million for the stake in Taas-Yuryakh.

Earlier, in May, ONGC Videsh, ONGC’s overseas arm, completed the formalities to acquire an additional 15 per cent stake in Vankorneft at a cost of $1.28 billion, which gave OVL 4.11 MMTOE.

Adding assets

“The acquisition will add 8.06 MMTOE to India’s overseas oil and gas assets,” the Centre said.

“It will also provide an opportunity to Indian public sector oil and gas companies to absorb newer technologies with Rosneft and British Petroleum. BP acquired 20 per cent stake in Taas-Yuryakh from Rosneft last year.”

Vankorneft owns Vankor, which is Russia’s second-largest oil and gas field, in terms of output.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.