Union Cabinet on Wednesday approved ONGC Videsh Limited (OVL)'s acquisition of 11% stake in Russian oil company, Vankorneft.

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Dharmendra Pradhan, Minister of State for Petroleum and Natural Gas tweeted that the approval of the deal would go a long way in creating an ‘energy bridge’ between the two strategic partners.

The equity oil yielding from this deal would be 3.01 Million Metric Tonnes Oil Equivalent (MMTOE), the Minister said in a tweet.

"It will also provide an opportunity to Indian public sector Oil and Gas companies to acquire new technologies from Rosneft. The acquisition is in line the ONGC’s stated objective of adding high quality international assets to India's Exploration and Production (E&P) portfolio and thereby augmenting India's energy security," Cabinet committee on Economic Affairs stated.

Pradhan thanked Prime Minister, Narendra Modi for the approval of the acquisition and stated that the total acquisition in Vankorneft and Taas - Yuryakh together amount to 15.18 MMTOE in the last two months.

State-owned oil and natural gas company had last year bought 15% stake in the field for $1.268 billion, a report by PTI stated.

OVL and Russia’s Vanok signed the acquisition deal on September 14 for $930 million.