ONGC Videsh, the overseas unit of India-based Oil and Natural Gas Corporation (ONG), has agreed to buy 15% stake in Vankorneft from Rosneft, for $1.25bn.
Rosneft launched Vankorneft as subsidiary in 2004 to undertake the development of the Vankor field located in the northern part of Eastern Siberia, in Turukhansky District of Krasnoyarsk Territory, 142km from Igarka.
The company estimates that the field to contain 476 million tons of oil and condensate and 173 billion cubic meters of gas.
On condition of anonymity, a source told Reuters that the deal would add more than 3 million tons of oil annually to the ONGC’s portfolio.
Under the terms of the deal, Rosneft will create an operator company which will efficiently manage the Vankor field and also its other licenses in this region.
The transaction is subject to regulatory and other approvals.
Rosneft management board chairman Igor Sechin said: "Collaboration in such a large-scale project will allow establishing a brand new level of strategic cooperation between Rosneft and ONGC Videsh.
"This will accelerate the development of our partnership, in other large-scale oil and gas upstream projects in the region.
"Such a short time between reaching the agreements and signing the document testifies to the high level of credibility between us and the Indian partners which guarantees efficient joint work."
ONGC plans to strengthen its upstream portfolio with an investment of $169bn by 2030, reported Bloomberg earlier.
Image: officials from ONGC Videsh and Rosneft. Photo: courtesy of ROSNEFT