India’s ONGC Videsh has agreed to acquire an additional 11% interest in Vankorneft, a subsidiary of Rosneft that operates the Vankor oilfield and North Vankor licence in eastern Siberia.
Following the transaction, the company’s participation share in Vankorneft will increase to 26%.
Vankor is Rosneft’s second largest oilfield, accounting for 4% of Russian oil production.
Every day, the field produces around 421,000bpd of crude oil on average.
ONGC Videsh’s share of daily oil production from Vankor will be about 110,000bpd.
ONGC said that the acquisition will increase the company’s existing production by about 30% at the current rate, and provide about 2.2MMt of oil and 1.0BCM of gas every year.
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By GlobalDataThe deal is consistent with the company’s objective of adding quality international assets to its existing E&P portfolio, and will improve its presence in Russia.
Subject to relevant board, government and regulatory approvals, the acquisition is expected to close by the end of this year.
ONGC Videsh manages 37 projects in 17 countries, and is currently producing about 215,000 barrels of oil and oil equivalent gas per day.
As of 31 March, the company has total oil and gas reserves of about 596MMTOE.
