Indian Consortium to Pay $3.3bn in September to Rosneft for Recent Stake Buy in Russian Assets

Indian Oil Corporation (IOC), Oil India (OIL) and Bharat PetroResources (BPRL) will pay $3.3 billion to Rosneft’s in September for the recent stake purchase in latter’s energy assets.

Earlier this year, the consortium of the three state owned energy firms bought 29.9 percent stake in Taas-Yuryakh Neftegasodobycha oil and gas field for about $1.28 billion. The consortium also bought 23.9 percent stake in Rosneft subsidiary, Vankorneft for $2.02 billion. 

Of the total cost, IOC would shell out $1.2 billion; its board has given the go-ahead for the same, Financial Express reported Monday.

India is looking to expand its presence in Russian oil and gas space in order to secure its energy supplies. New Delhi also wants Russian companies to invest in Indian energy space. Indian oil minister Dharmendra Pradhan held extensive talks with leading Russian energy firms when he attended the St Petersburg International Economic Forum (SPIEF) earlier this month.

Pradhan met with and talked energy cooperation with CEOs of Rosneft, Novatek and Gazprom. The minister briefed these companies on government’s recent policy announcements and investment opportunities in the hydrocarbon sector, including on the Hydrocarbon Exploration and Licensing Policy (HELP) and Small Discovered fields bidding round.

The minister also met with Alenxander Novak, Russian energy minister. Both ministers discussed the entire gamut of oil and gas relations between India-Russia and expressed satisfaction on the ongoing cooperation between the two countries in the hydrocarbon sector.  

Pradhan said India is interested in participating in Rosneft disinvestment program.