An Indian consortium led by Oil India (OIL), including Indian Oil Corporation (IOCL) and Bharat PetroResources (BPRL), have successfully completed two acquisitions of producing upstream assets in Russia. The final deals were concluded on Wednesday. The consortium acquired a 29.9% stake in Taas Yuryakh and a 23.9% stake in Vankorneft from Rosneft, the national oil company of Russia.
“The transactions received approvals from relevant government authorities of India and Russia in late September and completed simultaneously on October 5 in Moscow,” Oil India said in a statement.
The definitive agreements for the Taas Yuryakh and Vankorneft deals were signed on March 16 and June 17 this year.
Taas Yurakh is a producing asset and one of the largest green field developments in Eastern Siberia. Post this transaction, Rosneft now holds 50.1% in the field. BP is the other partner with 20%.
Vankor is a producing giant oilfield, also located in Eastern Siberia. It is the second largest field in Russia by production and contributes to about 10% of Rosneft’s entire oil production. Post this transaction, Rosneft now holds 61.1% in the field. ONGC Videsh currently holds 15% stake.
The current combined production from both fields is around 440,000 bopd or 22 mtpa and OIL’s share of current oil production is 1.7 mtpa. The fields are also producing about 5.6 bcm of sales gas per annum. The remaining oil and gas reserve of the two fields together are nearly 3.86 billion barrel oil equivalent.
Indian Consortium was advised by Rothschild & Co as financial adviser, CGG Vostok as Technical adviser, Latham & Watkins as Legal adviser and Ernst and Young as accounting and tax adviser on both the transactions.