The Government of Russia 24 March 2016 approved a deal for ONGC Videsh Ltd (OVL) to acquire 15 percent stake in Vankor oilfield from Rosneft.
The deal is worth 1.3 billion US dollars. It was signed between the OVL and Rosneft in September 2015.
This deal is in addition to another deal that was signed between the OVL and three other oil companies in March 2016.
As per the deal, OVL’s stake in Vankor will raise to 26 per cent from 15 per cent, while the other three companies could together pick up 23.9 per cent. Consequently, Rosneft will retain the remaining 50.1 per cent.
Both these deals will help India secure access to lucrative Russia's oil market, while Rosneft will gain access to the Indian market.
About Vankor oilfield
• It is located in Russia’s east Siberia and consists of 500 mn tonnes of oil and 182 bn cubic meters of gas.
• It started commercial production in 2009 and, at present, produces 440000 barrels of oil per day.
• The field, which was discovered in 1988, is the largest field in Russia and key provider of volumes to the East Siberia Pacific Ocean (ESPO) Pipeline that fulfills the energy needs of China.
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What: Approved by Russia
When: 24 March 2016