Rosneft Sells 15% Stake in Vankorneft to India's ONGC Videsh

Rosneft is planning to close the deal to sell 15 percent stake in Vankorneft to India’s ONGC Videsh (OVL).  

“Rosneft and Indian ONGC Videsh Limited during the Eastern Economic Forum signed the agreement of sale and purchase of 15 percent in Vankorneft and shareholders agreement in regard of the enterprise management. The document was signed by the Chairman of Rosneft Management Board Igor Sechin and Managing Director of ONGC Videsh Limited Narendra Verma. The parties are planning to close the deal after getting necessary regulatory and other approvals,” Rosneft announced Friday.

Vankorneft is the developer of the Vankor oil and gas condensate field in Turukhansky distrcit of Krasnoyak Territory in Russia.

After closing the deal the Indian state owned energy firm will have two places in the Board of Directors of Vankorneft. Rosneft will keep 100 percent control of the general infrastructure of Vankor cluster, including oil pipeline Vankor-Purpe. Rosneft will also create an operator company that will allow more efficient management of both Vankor field and other company’s licenses in this region.

The agreements on considering acquisition of minority share in Vankorneft by ONGC were reached on 8July, 2015 during the meeting between the President of the Russian Federation Vladimir Putin and Prime Minister of the Republic of India Narendra Modi in Ufa.