ONGC Videsh Ltd, the overseas arm of state-run explorer ONGC, has decided to buy 15% stake in Vankorneft (that runs the Vankor oil field in East Siberia) from Russia’s Rosneft for reportedly $1.25 billion.
“Rosneft and Indian ONGC Videsh during the Eastern Economic Forum signed the agreement of sale and purchase of 15% in Vankorneft and shareholders agreement in regard of the enterprise management. The document was signed by the chairman of Rosneft management board Igor Sechin and managing director of ONGC Videsh Narendra Verma,” the Russian oil major said in a statement on Friday morning.
In December 2014, FE reported that OVL is looking at picking up stake in the Vankor fields that are producing crude oil. The field, which has been under production since August 2009, produces more than 4,00,000 barrels of oil per day, double the output of Barmer, India’s largest onshore field, which is operated by Cairn India.
OVL expects to get more than 3 million tonnes of oil a year from the stake. The agreements on considering acquisition of minority share in Vankorneft by ONGC Videsh were reached on July 8, 2015 during the meeting between the President of the Russian Federation Vladimir Putin and Prime Minister of the Republic of India Narendra Modi in Ufa.
Vankorneft, Rosneft subsidiary, was established in 2004 for development of Vankor oil and gas condensate field – the largest of the fields, discovered and put into operation in Russia in the last 25 years. The field is situated in the Turukhansky district of Krasnoyarsk Territory, 142 km away from the city of Igarka. The initial recoverable reserves of the Vankor field by the January 1 2015 are estimated at 476 million tonnes of oil and condensate and 173 billion cubic meters of gas. The acreage of the field is 447 square km.
In 2014 Vankor produced 22 million tonnes of oil which exceeds the results of 2013 by more than 3%. The daily output is more than 60, 000 tonnes.
Oil transportation is carried out through the 556-km long main oil pipeline Vankor-Purpe. The oil produced at the field is one of the main sources for packing the Eastern Siberia – Pacific Ocean pipeline.