CCEA approves acquisition of 11% stake in JSC Vankorneft by ONGC Videsh
The Cabinet Committee on Economic Affairs (CCEA) gave its approval to an acquisition by ONGC Videsh Ltd (OVL) for 11% stake in JSC Vankorneft from Rosneft Oil Company (Rosneft), Russia’s national oil company on 5 October 2016.
The OVL will pay 930 million US dollar for acquiring 11 per cent in Vankorneft.
The acquisition is in line with ONGC’s stated objective of adding high quality international assets to India's exploration and production portfolio.
Earlier in May 2016, OVL completed the formalities for acquisition of 15% stake in Vankorneft at a cost of 1.284 billion US dollar, which gave OVL 4.11 MMTOE.
The acquisition of stake in Vankorneft will provide 3.2 Million Tonnes of Oil Equivalent (MMTOE) to OVL by 2017.
It will also provide an opportunity to the Indian public sector oil and gas companies to acquire new technologies from Rosneft.