New Delhi: State-owned Oil and Natural Gas Corp (ONGC) overseas arm ONGC Videsh (OVL) on Friday agreed to buy a 15 per cent stake in Russia’s second biggest oil field Vankor from Rosneft.
Sources said OVL will be paying $1.27 billion for the stake making this its fourth biggest acquisition ever. The interest in the Vankor will be acquired by buying stake 15 per cent shares in the oil field owner CSJC Vankorneft.
Vankor is Rosneft’s (and Russia’s) second largest field by production and accounts for four per cent of Russian production. The daily production from the field is around 442,000 bpd of crude oil on an average with ONGC Videsh’s share of daily oil production at about 66,000 bpd.
The deal was signed by OVL CEO and managing director Narendra Verma and Rosneft chairman Igor Sechin during the Eastern Economic Forum (EEF) held in Vladivostok on Friday in the presence of Russian President Vladimir Putin.
