Rosneft and Indian ONGC Videsh Limited during the Eastern Economic Forum signed an agreement of sale and purchase of 15% in Vankorneft and an shareholders agreement in regard of the enterprise management. The document was signed by the Chairman of Rosneft Management Board Igor Sechin and Managing Director of ONGC Videsh Limited Narendra Verma.
The parties intend to complete the transaction upon getting necessary regulatory and other approvals.
ONGC Videsh will have two places in the Board of Directors of Vankorneft. Rosneft will create an operator company that will allow more efficient management of both Vankor field and other Company’s licenses in this region.
The agreements on considering acquisition of minority share in Vankorneft by ONGC Videsh were reached on July 8, 2015 during the meeting between the President of the Russian Federation Vladimir Putin and Prime Minister of the Republic of India Narendra Modi in Ufa.
Commenting on the signed document Igor Sechin said, “Collaboration in such a large-scale project will allow establishinga brand new level of strategic cooperation between Rosneft and ONGC Videsh. This will accelerate the development of our partnership, in other large-scale oil and gas upstream projects in the region. Such a short time between reaching the agreements and signing the document testifies to the high level of credibility between us and the Indian partners which guarantees efficient joint work.”
Vankorneft, Rosneft subsidiary, was established in 2004 for development of Vankor oil and gas condensate field – the largest of the fields, discovered and put into operation in Russia in the last 25 years. The field is situated in the Turukhansky district of Krasnoyarsk Territory, 142 km away from the city of Igarka. The initial recoverable reserves of the Vankor field by the January 1st 2015 are estimated at 476 mln. tons of oil and condensate and 173 bln. cubic meters of gas. The acreage of the field is 447 square km.
In 2014 Vankor produced 22 mln tons of oil which exceeds the results of 2013 by more than 3%. The daily output is more than 60, 000 tons. Thanks to implemented technological solutions, oil recovery factor at Vankor is one of the highest in Russia. The field is drilled with the inclined- and production- injection wells with horizontal ending which provides high well flow rates. The process of oil production is fully automated.