ONGC Videsh to add 11% in Vankorneft in East Siberia

India’s ONGC Videsh Ltd. has signed definitive agreements with OJSC Rosneft to acquire an additional 11% interest in CJSC Vankorneft and therefore interest in Vankor oil and gas condensate field in East Siberia. The acquisition is expected to close by yearend.

ONGC Videsh, a subsidiary of Oil & Natural Gas Corp. Ltd., acquired an initial 15% interest in Vankorneft in a deal that closed in May after a signing with Rosneft in September 2015.

Rosneft said a separate “ongoing transaction” for Vankorneft involves a 23.9% purchase by a consortium of Indian companies: Oil India Ltd., Indian Oil Corp. Ltd., and Bharat PetroResources Ltd. A heads of agreement was signed in March.

If both proposals are completed, the Indian proportion would rise to 49.9%.

Vankorneft was established in 2004 for development of Vankor field in the Turukhansky district of Krasnoyarsk Territory. Rosneft said Vankor in 2015 produced 22 million tonnes of oil and 8.71 billion cu m of gas.