Sun Group of Russia to buy stake in 4 OIL blocks

Russia-based Sun Group, controlled by the Khemkas, is planning to acquire stake in four onland oil and gas blocks of Oil India (OIL).

Suntera Resources, a 50:50 joint venture between Sun Energy and Russian gas firm Itera, proposes to farm-in to two Rajasthan, one Mahanadi and one Assam-Arakan basin blocks held by OIL, official sources said.

Suntera would take 30% stake in RJ-ONN-2001/1 in Rajasthan, reducing operator OIL's stake from 70% to 40%. The 3507.11 sq km block, which was awarded under the third round of New Exploration Licensing Policy (NELP), has Oil and Natural Gas Corporatio (ONGC) as the minority partner with 30% stake.

In the 2,535 sq km Rajasthan basin block RJ-ONN-2000/1, awarded in NELP-II, Suntera will take 40% from OIL.

Suntera would acquire 15% stake in Mahanadi basin block MN-ONN-2000/1 (NELP-II block) and 10% in Assam-Arakan basin block AA-ONN-2002/3 (NELP-VI block).

Sources said the stake transfer would have to be vetted by oil regulator Directorate General of Hydrocarbons (DGH) before the deal is signed.