ONGC Videsh Ltd (OVL), the overseas subsidiary of Indian state-owned Oil and Natural Gas Corp (ONGC), is discussing with a Russian oil company to acquire stakes in two oil fields in Siberia (Russia). Discussion are still at a preliminary stage. OVL might take over a 10% stake in the large Rosneft-operated Vankor fields in northern Siberia; in September 2014, the Russian group sold a 10% interest in Vankor to CNPC (China) for US$1bn. At year end 2013, recoverable reserves in the Vankor field were estimated at 500 Mt of oil and condensate and 182 bcm of gas. Production started in 2014 and is expected to reach a peak of in 2019 at a pace of 500,000 bbl/d (25 Mt/year). OVL could also acquire a stake in the Yurubcheno-Tokhomskoye oilfield in eastern Siberia, estimated to hold 991 mboe of reserves. Production should start in 2017 and reach a plateau of up to 100,000 bbl/d (5 Mt/year) in 2019.
OVL is seeking to build up its presence in the CIS, in Africa (Angola, Nigeria) and in America (US, Canada and Latin America). The group suffered many setbacks from Chinese companies in the last few years. In 2013, Kazakhstan blocked the US$5bn bid by OVL to acquire an 8.4% stake in the Kashagan oil field from ConocoPhillips, pre-empting the stake and selling it to CNPC (China). In 2005, India had already lost a US$4.18bn deal to buy PetroKazakhstan to China.