Indian firms joining Rosneft for field work

OJSC Rosneft has signed several participation agreements with Indian oil companies expected to boost development of large oil and gas-condensate fields in eastern Siberia.

Through a subsidiary, the Russian company signed a binding agreement under which three state-owned companies, acting jointly as Indian Consortium, will acquire a 29.9% participatory share of Rosneft subsidiary Taas-Yuryakh Neftegazodobycha LLC (TYN).

The Indian companies are Indian Oil Corp., Oil India Ltd., and Bharat PetroResources Ltd. BP PLC acquired a 20% interest in TYN last November.

TYN operates Srednebotuobinskoye oil and gas-condensate field in the Sakha Republic, Yakutia. The field produces about 20,000 b/d of crude from 50 wells and is connected to the Eastern Siberia-Pacific Ocean (ESPO) oil pipeline with a 169-km spur. It is expected to reach peak production of 100,000 b/d by 2021.

The acquisition is expected to close by September.

Indian Consortium also signed a heads of agreement to evaluate the acquisition of a 23.9% interest in Vankorneft, the Rosneft subsidiary that operates Vankor oil and gas-condensate field and the North Vankor license in the Turukhansky district of Krasnoyarsk Territory.

Vankor field produces as much as 440,000 b/d of oil into the 556-km Vankor-Purpe pipeline and is one of the main sources of oil carried by the ESPO line.

The consortium and Rosneft also signed a memorandum of understanding for joint evaluation and possible joint participation in development of Suzunskoye, Tagulskoye, and Lodochnoye oil fields in the Vankor area.

Separately, Rosneft signed a memorandum of understanding with ONGC Videsh Ltd. for an increase in the Indian company’s holding in Vankorneft to 26%. ONGC Videsh agreed to acquire a 15% interest in Vankorneft last September in a deal that hasn’t yet closed.

The new agreement covers the possible formation of long-term crude-supply deals.

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