Indian Oil Corp. Ltd, Oil India Ltd (OIL) and Bharat PetroResources Ltd (BPRL) have signed the definitive agreement to acquire up to 23.9% shares from Rosneft Oil Co., NOC of Russia in JSC Vankorneft, a company organised under the law of the Russian Federation, which is the owner of Vankor and North Vankor Field licences. 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).
Presently Rosneft Oil Company holds 85% shares and ONGC Videsh Ltd holds 15% shares in JSC Vankorneft. Vankor field, located in East Siberia, is Russia’s second largest field by production.
The agreement takes forward the shared vision of the Hon’ble Prime Minister of India, Mr. Narendra Modi, and the Hon’ble President of Russia, Mr. Vladimir Putin, to strengthen the India-Russia partnership.
Shri Dharmendra Pradhan, Hon. Minister of State-Independent Charge, Ministry of Petroleum & Natural Gas, Government of India, commented: “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.”
Edited from press release by Angharad Lock
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