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Government okays OVL’s 11 per cent stake buy in Russian asset

Earlier in May 2016, OVL acquired 15 per cent stake in the same asset for $1.284 billion, which is the Indian explorer share of 4.11 million tonnes of oil equivalent (mtoe).

By: ENS Economic Bureau | New Delhi |
October 6, 2016 1:11:36 am

The Cabinet Committee on Economic Affairs on Wednesday gave its nod to an acquisition by ONGC Videsh (OVL) of 11 per cent stake in Russia’s Rosneft-operated Vankorneft. OVL will be paying $930 million for the same.

Earlier in May 2016, OVL acquired 15 per cent stake in the same asset for $1.284 billion, which is the Indian explorer share of 4.11 million tonnes of oil equivalent (mtoe). The additional 11 per cent acquisition will provide another 3.2 mtoe to OVL by 2017. It will also provide an opportunity to Indian public sector oil and gas companies to acquire new technologies from Rosneft.

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Besides OVL’s 26 per cent, a consortium of comprising Oil India (OIL), Indian Oil Corporation (IOC) and Bharat PetroResources (BPRL) acquired 23.9 per cent stake in the field at a cost of $2.02 billion, giving them 6.56 million tonnes of oil.

OIL-led consortium on Wednesday completed the deal paying $2.02 billion to Rosneft. “Indian companies have now invested $4.2 billion in Vankor. Together with 29.9 per cent stake OIL-IOC-BPRL consortium bought in Taas-Yuryakh oilfield in East Siberia for $1.12 billion, the total investment in Russia this year is $5.46 billion. This investment will give India 15.18 million tonnes of oil equivalent,” Oil Minister Dharmendra Pradhan said.

The Cabinet also gave its approval to HLL Lifecare to sub-lease around 330 acres of land at Chengalpattu on the outskirts of Chennai as part of setting up a medical devices manufacturing park (Medipark). FE with PTI

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