The Cabinet Committee on Economic Affairs (CCEA) on 5 October 2016 gave its approval to an acquisition by ONGC Videsh Ltd (OVL) for 11% stake in JSC Vankorneft from Rosneft Oil Company (Rosneft), Russia’s national oil company.
The OVL will pay 930 million US dollar for acquiring 11 per cent in Vankorneft.
The acquisition is in line with ONGC’s stated objective of adding high quality international assets to India's exploration and production portfolio.
Earlier in May 2016, OVL completed the formalities for acquisition of 15% stake in Vankorneft at a cost of 1.284 billion US dollar, which gave OVL 4.11 MMTOE.
• The acquisition of stake in Vankorneft will provide 3.2 Million Tonnes of Oil Equivalent (MMTOE) to OVL by 2017.
• It will also provide an opportunity to the Indian public sector oil and gas companies to acquire new technologies from Rosneft.
About ONGC Videsh Ltd
• ONGC Videsh Limited is the international arm of ONGC.
• It was rechristened on 15 June 1989.
• ONGC holds 100% stake in ONGC Videsh Limited.
• It is a Miniratna Schedule A Central Public Sector Enterprise (CPSE) of the Government of India under the administrative control of the Ministry of Petroleum & Natural Gas.
• In terms of reserves and production, ONGC Videsh is the second largest petroleum Company of India, next only to its parent ONGC.
About Rosneft Oil Company
• Rosneft is an integrated oil company majority owned by the Government of Russia.
• It is headquartered in Moscow's Balchug district near the Kremlin, across the Moskva River.
• It became Russia's leading extraction and refinement company after purchasing assets of former oil giant Yukos at state-run auctions.
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What: Approved by CCEA
When: 5 October 2016