Under the terms of the deal, the consortium agreed to acquire the stake in JSC Vankorneft, which owns Vankor and North Vankor Field licenses, from Rosneft Oil Company (Rosneft), a state-owned firm of Russia.

Scheduled to be completed by September 2016, the deal is subject to relevant board, government and regulatory approvals.

Located in East Siberia, the Vankor field is claimed to be Russia’s second largest field by production and accounts for around 4% of oil production in Russia. The field has approximately 422,000 barrels of oil per day (bopd) of production capacity.

According to IndianOil estimates, the Vankor field has recoverable resources of 361 million tons of oil and condensate and 138 billion cubic meters of gas.

Indian Petroleum and Natural Gas State Minister Dharmendra Pradhan said: "The agreement will further strengthen the long-standing relationship between Indian PSUs and Rosneft, paving the way for an enriching journey together.

"The acquisitions also have significant strategic importance to India, both in terms of augmenting India’s energy security as well as enhancing India’s stature in the global political and economic arenas."

Igor Sechin said: "The vertically integrated model to be created based on a leading upstream asset in Russia marks a new page in the energy dialogue between Russia and India".

Rosneft has 85% stake in the JSC Vankorneft while ONGC Videsh has 15% stake.

Image: Officials from Rosneft, Indian Oil, Oil Corporation and Bharat PetroResources during agreement signing ceremony.Photo: courtesy ofIndian Oil Corporation Ltd.