The overseas arm of ONGC, ONGC Videsh Ltd. (OVL) has bought a 15% stake in Vankorneft, a subsidiary of the Russian oil giant Rosneft. The deal is yet to get a regulatory approval.
- The deal will enable ONGC to have two directors on Vankorneft’s board, while Rosneft will continue to retain control over the oil-producing operations.
- OVL is slotted to receive nearly 3.5 million tonnes of oil per annum after the deal becomes operational.
- India’s demand for oil continues to grow and OVL is diversifying its oil portfolio by increasing its global partnerships with various oil and gas companies.
- Among the other acquisitions made by OVL are, a 20% stake in Sakhalin-1on the eastern coast of Russia, a 100% ownership of Imperial Energy with oil fields in Siberia and a 16% stake in Rovuma Area1 fields in Mozambique.
Vankor Oil and Gas Field
Vankorneft was founded as a subsidiary of Rosneft in 2004 to operate the Vankor oil and gas field, which estimated to have oil reserves up-to 500 million tonnes. The oil and gas field is located in the Turukhansk District of Krasnoyarsk Territory in Eastern Siberia.