Russia Clears ONGC's 15% Stake Purchase in Vankorneft

The Russian government has cleared the $1.3 billion acquisition by the Indian state-owned ONGC Videsh (OVL) of a 15-percent interest in Vankorneft.

OVL, the overseas arm of Indian state owned ONGC,  signed the deal to acquire the 15 percent  stake in September last year.

Vankorneft is a 100-percent subsidiary of Rosneft, and Vankor is the largest oil and gas field discovered in Russia in the past 25 years.

Plans are in place to produce about 500 million tonnes of oil and about 182 billion cubic metres of gas jointly by the Russian and Indian sides at this field alone.

“The commission was in favour of this transaction and, as the government of India also approved it, the transaction will be executed in the near future,” Russian government said in statement Thursday.

Rosneft recently signed a preliminary agreement with the Indian side for it to buy an additional stake in Vankorneft. OVL inked a deal to hike its stake from current 15 percent to 26 percent.

In 2015 Vankor produced 22 mn tons of oil and 8.71 bcm of gas.