Indian oil major ONGC Videsh's bid to buy an additional 11 per cent stake in Russia's Vankor oil field for USD 930 million has been approved by the Union Cabinet on Wednesday.
OVL, the overseas arm of state-owned Oil and Natural Gas Corporation (ONGC) in May this year had completed acquisition of 15 per cent stake in Vankor oil field for USD 1.28 billion.
"The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given its approval to an acquisition by OVL for 11 per cent stake in JSC Vankorneft from Rosneft Oil Company (Rosneft), the national oil company of Russian Federation (Russia)," an official statement said here. Rosneft operates Vankor fields through its wholly-owned subsidiary, Vankorneft.
"OVL will be paying an amount of USD 930 million for acquiring 11 per cent stake in Vankorneft," it said. The acquisition of stake in Vankorneft will provide 3.2 million tonnes of oil equivalent to OVL by 2017. It will also provide an opportunity to Indian public sector oil and gas companies to acquire new technologies from Rosneft.
"The acquisition is in line with the ONGC's stated objective of adding high quality international assets to India's exploration and production (E&P) portfolio and thereby augmenting India's energy security," the statement said.
Besides OVL's 26 per cent stake in Vankor, a consortium comprising Oil India (OIL), Indian Oil Corporation (IOC) and Bharat PetroResources (BPRL) acquired 23.9 per cent stake in Vankorneft at a cost of USD 2.02 billion, which will give them 6.56 mt of oil. OVL's previous 15 per cent stake buy in Vankor had given it 4.11 mt per annum of oil.