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OVL gets govt nod to up stake in Russian oil field for $930 mn

FPJ Bureau | Updated on: Thursday, May 30, 2019, 12:14 PM IST

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New Delhi : ONGC Videsh Ltd (OVL) on Wednesdsy got government nod to raise its stake in Russia’s second biggest oil field of Vankor by 11 per cent at an investment of $ 930 million.

 OVL, which had previously bought 15 per cent stake in Vankor from Russian national oil firm Rosneft for USD 1.268 billion, will get additional 3.2 million tons of oil equivalent on top of 4.11 million tons secured earlier.  Besides OVL’s 26 per cent, a consortium of comprising Oil India (OIL), Indian Oil Corporation (IOC) and Bharat PetroResources (BPRL) acquired 23.9 per cent stake in the field at a cost of USD 2.02 billion, giving them 6.56 million tons of oil. Parallely, OIL-led consortium today completed the deal paying USD 2.02 billion to Rosneft.”Indian companies have now invested $ 4.2 billion in Vankor. Together with 29.9 per cent stake OIL-IOC-BPRL consortium bought in Taas-Yuryakh oilfield in East Siberia for USD 1.12 billion, the total investment in Russia this year is USD 5.46 billion. This investment will give India 15.18 million tons of oil equivalent,” Oil Minister Dharmendra Pradhan said.

 The investment made compares to $ 28.48 billion investment by Indian companies overseas in the past 50 years, giving it about 10 million tons of oil equivalent, he said.

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 OVL had in May closed a deal to acquire 15 per cent stake in JSC Vankorneft — a company organised under the law of Russian Federation, which is the owner of Vankor Field and North Vankor licence.

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Published on: Thursday, October 06, 2016, 06:18 AM IST