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ONGC inks pact to buy stake in Russian company

Deal is expected to receive approvals from the boards of the companies as well as the Indian and Russian governments

Policy Pulse
Publish Date: Sep 15 2016 4:06PM | Updated Date: Sep 15 2016 4:06PM

ONGC inks pact to buy stake in Russian company

 The Oil and Natural Gas Corp (ONGC) has signed agreements with Russian state-run oil major Rosneft OAO to purchase 11 percent extra  stake in JSC Vankorneft.

 
"The daily production from the field is around 421,000 barrels per day (bpd) of crude oil on an average and together with the earlier acquisition of 15 per cent, ONGC Videsh's share of daily oil production from Vankor will be about 110,000 bpd," ONGC said in a statement in the national capital.
 
"Vankor -- that operates the Vankor oil and gas fields in Siberia -- is Rosneft's second-largest field by production and accounts for 4 per cent of Russia's production," it said.
 
The definitive agreement was signed in Moscow on September 14 by ONGC's overseas arm ONGC Videsh Ltd's (OVL) Chief Executive Officer Narendra K. Verma and Chairman Igor Sechin of the Rosneft board of directors, ONGC said.
 
The deal is expected to receive approvals from the boards of the companies as well as the Indian and Russian governments by the end of 2016, it added.
 
Once the deal is done, OVL will have 26 percent stake in JSC Vankorneft, along with 15 percent acquired in May 2016.