Oil India Ltd said on Friday that it has completed the acquisition of a 50 per cent shareholding in WorldAce Investments, a Cyprus based wholly owned subsidiary of PetroNeft Resources, for $85 million (₹ 507 crore approx) including $45 million (₹ 268 crore approx) for capital expenditure. WorldAce owns License 61 in Tomsk Oblast region in Western Siberia, Russia. The effective date of the acquisition is January 1.

The acquisition marks Oil India’s entry into Russia and another addition to the company’s overseas exploration and production portfolio. “License 61 is located on the eastern side of the Ob river in the oil-bearing region of the Tomsk Oblast,” Oil India said in a statement.

“The 4,991 sq km licence contains seven oil fields and over 25 identified prospects and leads. The block started production in 2010 and current production from the licence is around 2,100 barrels of oil per day,” the company said in a statement.

Rothschild and Thomson and Knight acted as the exclusive financial and legal advisor respectively to Oil India.

 

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