ONGC Videsh Ltd (OVL), the foreign arm of Indian state-owned petroleum explorer Oil and Natural Gas Corporation (ONGC), has completed the acquisition of a 15% in Vankorneft from Russian oil producer Rosneft for US$1,268m. Rosneft will retain 85% but could divest another 11% to OVL in the future (details of the deal to be finalised).
Vankorneft is a subsidiary of Rosneft established in 2004 to develop the Vankor oil and gas condensate field in the Krasnoyak Territory. Vankor is the second-largest oil field in Russia, with recoverable reserves estimated at 476 Mt of oil and condensate and 173 bcm of gas. In 2014 Vankor produced 22 Mt of oil (average production of 442,000 bbl/d, which would give OVL more than 66,000 bbl/d of production).
The transaction will enhance OVL's presence in Russia. In 2009, the company acquired 20% in the Sakhalin-I oil and gas field in eastern Russia for US$2.1bn.