ONGC Videsh Limited signed definitive agreements to acquire up to 15 percent shares in CSJC Vankorneft, a company organized under the law of Russian Federation which is the owner of Vankor Field and NorthVankor license.
Rosneft Oil Company, NOC of Russia holds 100 percent shares in Vankorneft.
The acquisition is subject to relevant Board, Government and regulatory approvals and is expected to close by mid of 2016.
The agreement was signed by Mr. Narendra K. Verma, CEO & Managing Director, ONGC Videsh and Mr. Igor Sechin, Chairman Board of Directors, Rosneft during the Eastern Economic Forum (EEF) held in Vladivostok today in the presence of H.E. Mr. Vladimir Putin, President of Russian Federation.
Vankor is Rosneft's (and Russia's) second largest field by production and accounts for 4% of Russian production. The daily production from the field is around 442,000 bpd of crude oil on an average with ONGC Videsh's share of daily oil production at about 66,000 bpd.
The present transaction provides an opportunity to ONGC Videsh to enhance its presence in Russia and is consistent with its stated strategic objective of adding high quality international assets to its existing E&P portfolio. This acquisition also has significant strategic importance to India, both in terms of augmentation of India's Energy Security as well as enhancing India's stature in the global political and economic arenas.
Citi worked as the sole exclusive financial advisor whereas Dentons worked as legal advisor to ONGC Videsh on this transaction.