ONGC Videsh gets CCEA nod to raise Vankor stake by 11%

The Cabinet committee of Economic Affairs (CCEA) has given its nod to ONGC Videsh (OVL) to raise its stake in Russia's Vankor Field in East Serberia. OVL will pick up the additional 11% stake for $930 million or approximately Rs 6187.05 crore. 

ONGC had earlier notified the BSE that "ONGC Videsh (and its wholly owned subsidiary ONGC Videsh Vankorneft) jointly signed definitive agreements with Rosneft to acquire additional 11% shares in JSC Vankorneft."

This is in addition to the 15% shareholding interest that the company already holds in Vankor Field as of May 31, 2016. The transaction will raise ONGV Videsh's participation share in Vankorneft to 26%. 

Oil and Natural Gas Minister Dharmendra Pradhan said that OVL's 11% additional stake in Vankor field will fetch 3.01 million tonnes equity oil. 

After the announcement, ONGC's shares were trading down 1.33% or Rs 3.65 lower at Rs 270.10 apiece.