OIL, IOCL and BPRL to acquire 29% stake in Tyngd of Russia
The Dollar Business Bureau
A consortium of oil companies from India, including Oil India Limited (OIL), Indian Oil Corporation Limited (IOCL) and Bharat PetroResources Ltd (BPRL), is going to acquire 23.9 percent share in JSC Vankorneft and 29.9 percent share in Tyngd from LLC RN Upstream, a fully-owned arm of Rosneft Oil Company, national oil company of Russia. The definite definitive contracts for the same were signed on March 16, 2016.
“The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, has given its approval to an Indian Consortium comprising Oil India Limited (OIL), Indian Oil Corporation Limited (IOCL) and Bharat Petro Resources Limited (BPRL) for acquiring 23.9 percent stake in JSC Vankorneft and 29.9 percent stake in LLC Taas-Yuryakh from M/s Rosneft Oil Company (Rosneft), the National Oil Company (NOC) of Russian Federation (Russia),” said an official statement.
“Vankor and Tass-Yuryakh fields are operated by Rosneft and are its fully-owned subsidiaries, it added.
The acquisition of share in JSC Vankorneft will give 6.56 million metric ton of oil equivalent (MMTOE) while acquisition in Taas-Yuryakh will give 0.5 MMTOE in the beginning and 1.5 MMTOE by the year 2019.
The given acquisitions are in sync with the objective of India to add high quality foreign assets to its portfolio of exploration and production and thus enhancing the country’s energy security.
The consortium will pay $2020.35 million for acquisition of 23.9 percent stake in Vankorneft and $1242 million for acquiring 29.9 percent stake in Taas-Yuryakh.
Earlier in May this year ONGC Videsh Ltd (OVL) signed an agreement to acquire 15 percent stake in Vankorneft at a value of $1.284 billion that provided 4.11 MMTOE to OVL.
With this acquisition India will add 8.06 MMTOE to its overseas gas and oil asset. This will also give an opportunity to India’s public sector companies in oil and gas to absorb new technologies from Rosneft and British Petroleum (BP). Last year, BP acquired 20 percent stake from Rosneft in Taas-Yuryakh.