Under the terms the deal, Oil India, Indian Oil and Bharat Petroresources, a unit of state-owned refiner Bharat Petroleum, will invest $1.7bn to acquire 29.9% stake in the Taas-Yuryakh Neftegasodobycha project.
With the signing of the deal, the consortium of the three Indian firms will enter into the joint venture (JV) established by Rosneft and BP for the Taas-Yuryakh Neftegasodobycha project.
Production from the Taas-Yuriakh field is estimated to reach up to 100,000 barrels per day (bpd) in the next two years from current 20,000 bpd of crude oil, reported Reuters.
Rosneft management board chairman Igor Sechin said: "The joint venture with our Indian and British partners allows to make the most of the technological, resource and commercial potential of all of the JV’s participants.
"Joined efforts of Rosneft, BP, Oil India, Indian Oil and Bharat Petroresources allow a significant acceleration of the Upstream projects’ implementation by virtue of increasing JV financial potential as well as open new prospects for marketing the East Siberian hydrocarbons."
The three Indian firms also agreed to acquire 23.9% stake in the Vankroneft, a unit of Rosneft established in 2004 for development of Vankor oil and gas condensate field in Russia.
A memorandum of understanding has also been signed by Rosneft with ONGC Videsh to increase the Indian company’s stake in the Vankor project to 26% from current 15% with an investment of $925m, reported Press Trust of India.
Igor Sechin added: "The cooperation formula, designed at the corporate level, is aimed at the creation of vertically integrated model, allowing India partners to participate in the upstream sector, whilst opening the growing India market to Rosneft."
Rosneft also signed a memorandum of understanding with Oil India, Indian Oil and Bharat Petroresources for cooperation in Vankor project. The deal scope involves potential development of the Suzunskoye, Tagulskoye and Lodochnoye fields.
Indian Minister of Petroleum and Natural Gas Dharmendra Pradhan said: "We are committed to work together to further strengthen the India-Russia relations in the hydrocarbon sector."
Image: Officials from Rosneft, Oil India, Indian Oil and Bharat Petroresources during agreement signing ceremony. Photo: courtesy of ROSNEFT.
