New Delhi (Sputnik) – In a race to acquire more energy assets in Russia, India swiftly finalized the deal.
“The government approved a Consortium comprising Oil India Limited (OIL), Indian Oil Corporation Limited (IOCL) and Bharat Petro Resources Limited (BPRL) for acquiring a 23.9 percent stake in JSC Vankorneft and 29.9 percent stake in LLC Taas-Yuryakh from M/s Rosneft Oil Company. The Consortium will be paying USD 2020.35 million for acquiring stakes in Vankorneft and USD 1242 million for acquiring stakes in Taas-Yuryakh,” a statement released by the Indian government read.
1/4 #Cabinet gives the go-ahead for acquisition of stakes in two Russian oil fields by Indian PSU Consortium— Frank Noronha (@DG_PIB) 28 сентября 2016 г.
The government stated that the acquisition is in line with India’s stated objective of adding high quality international assets to its Exploration &
Production portfolio and thereby augmenting India's energy security. Earlier in May 2016 ONGC Videsh Ltd (OVL) completed the formalities of acquiring a 15% stake in Vankorneft at the cost of USD 1.284 billion.
Earlier, Sputnik had reported that ONGC Videsh Ltd is exploring the opportunity to acquire a 49% stake in Rosneft's Tagul field. According to sources, the deal is likely to be around USD 1 billion, though nothing has been officially penned down yet. Since Tagul field is yet not operational, OVL will have to share the cost of making the field ready for production.
India currently imports more than 200 MT of crude oil ever year. The government aims to cut this figure down by 50% by the year 2030.