ONGC Videsh closer to acquiring stake in Vankorneft

ONGC Videsh Ltd. and Rosneft have signed an agreement of confirmation of completion of the first-stage pre-completion actions in relation to the creation of a joint venture in JSC “Vankorneft.” In September, Rosneft signed an agreement to sell 15% interest in Vankorneft, the developer of the Vankor oil and gas condensate field in the Turukhansky district of the Krasnoyak Territory in Russia, to ONGC Videsh. The parties intend to complete the transaction upon obtaining necessary regulatory and other approvals.

Rosneft and ONGC Videsh have also signed a memorandum of understanding for cooperation for geologic survey, exploration, and production of hydrocarbons onshore and on the continental shelf of the Russian Federation.

The document, signed in continuation of the memorandum of understanding for cooperation in exploration, appraisal, and hydrocarbon production on the continental shelf of the Russian Federation (signed within SPIEF-2014), confirms the companies’ intention to continue cooperation in the named areas and expands the sphere of the potential partnership to include Russian onshore hydrocarbon development projects, including possibly expanding their partnership for the development of Rosneft projects in East Siberia.

ONGC Videsh’s partnership with Rosneft began in 2001 when the former acquired a 20% stake in the Sakhalin-I oil and gas project in the Russian Federation.

Vankorneft, a Rosneft subsidiary, was established in 2004 for development of Russia's Vankor oil and gas condensate field. In 2014, Vankor produced 22 million tons of oil, exceeding the results of 2013 by more than 3%. The field's daily output is more than 60,000 tons. Oil transportation is carried out through the 345-mile-long (556-kilometer-long) main oil pipeline, Vankor-Purpe. The oil produced at the field is one of the main sources for packing the Eastern Siberia–Pacific Ocean pipeline.

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