Oil India-led PSU consortium to buy stakes in two Russian oil fields

A consortium of Oil India, Indian Oil and Bharat Petro Resources Limited (BPRL) will acquite 23.9% stake in Russia's Vankomeft and 29.9% stake in Taas-Yuryakh oil fields from Rosneft Oil Company, Government said on Wednesday. 

The acquisition of stake in Vankorneft will provide 6.56 Million Metric Ton of Oil Equivalent (MMTOE) and 29.9 percent stake in Taas-Yuryakh will provide 0.5 MMTOE initially and 1.5 MMTOE by 2019, Government said in a statement, adding "The acquisition is in line with India’s stated objective of adding high quality international assets to its Exploration & Production portfolio and thereby augmenting India's energy security."

Frank Noronha, Principal Spokesperson, Government of India, said, "The acquisition will add 8.06 Million Metric Ton of Oil Equivalent to India's overseas oil and gas asset." Moreover, It will also provide an opportunity to Indian public sector Oil and Gas companies to absorb newer technologies with Rosneft and British Petroleum (BP).

BP acquired 20% stake in Taas-Yuryakh from Rosneft last year. 

1/4 #Cabinet gives the go-ahead for acquisition of stakes in two Russian oil fields by Indian PSU Consortium

— Frank Noronha (@DG_PIB) September 28, 2016

2/4 Consortium comprising OIL, IOCL and BPRL to acquire 23.9% stake in JSC Vankorneft and 29.9% stake in LLC Taas-Yuryakh #Cabinet https://t.co/lH7c5fZJmx

— Frank Noronha (@DG_PIB) September 28, 2016

4/4 In line with India’s energy security objective of adding high quality int'l assets to its Exploration & Production portfolio #Cabinet https://t.co/uP6DikVTdE

— Frank Noronha (@DG_PIB) September 28, 2016

The Consortium will be paying $2020.35 million for acquiring stake in Vankorneft and $1242 million for acquiring stake in Taas-Yuryakh. Earlier in May 2016 ONGC Videsh Ltd (OVL) completed the formalities of acquiring15% stake in Vankorneft at the cost of US $ 1.284 billion which gave OVL 4.11 MMTOE, the statement said.