Companies

CCEA approves oil PSU consortium's stake buy in Russian assets for over $3 billion

Our Bureau New Delhi | Updated on January 16, 2018 Published on September 28, 2016

oil

The Cabinet Committee on Economic Affairs has given its approval for Oil India, Indian Oil Corporation and Bharat Petro Resources Ltd to acquire 23.9 per cent in JSC Vankorneft for $2.020 billion and 29.9 per cent stake in LLC Taas-Yuryakh for $1.242 billion from Russia’s national oil company Rosneft.

The acquisition in Vankorneft, which operates the Vankor oil fields in Siberia, will give the Indian consortium 6.56 million tonne of oil equivalent annually. Further, the acquisition of 29.9 per cent stake in Taas-Yuryakh will provide the consortium 0.5 mt of oil equivalent initially and 1.5 mt of oil equivalent annually from 2019.

“The acquisition is in line with India’s stated objective of adding high quality international assets to its exploration and production portfolio and thereby augmenting India’s energy security,” an official statement said.

“The acquisition will add 8.06 mt of oil equivalent to India's overseas oil and gas assets. It will also provide an opportunity to Indian public sector oil and gas companies to absorb newer technologies with Rosneft and BP. BP acquired 20% stake in Taas-Yuryakh from Rosneft last year,” the statement added.

In May, ONGC Videsh had completed a 15 per cent stake acquisition in Vankorneft for $1.284 billion. The company is also in talks to purchase another 11 per cent stake in Vankorneft which will raise the total stake of Indian companies in the asset to 49.9 per cent.

Published on September 28, 2016
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