Rosneft and Indian ONGC Videsh Limited have signed the agreement of sale and purchase of 11% in Vankorneft and shareholders agreement in regard of the enterprise management, says Rosneft. The documents were signed during the meeting of Rosneft Chief Executive Officer Igor Sechin and ONGC Videsh Limited Managing Director Narendra Verma.
Parties intend to complete the transaction upon getting necessary regulatory and other approvals.
After the closing of the transaction ONGC will raise its participation share in Vankorneft to 26%. Consequently the share of Indian state companies may increase to 49.9%. Rosneft will hold the majority in the project, retain the control over the operations of the named company and over 100% of the cluster’s infrastructure (including the Vankor-Purpe pipeline), which was spin-off into the RN-Vankor LLC.
The implementation of the signed agreements together with the currently ongoing transaction for the purchase of a 23.9% share in Vankorneft by a consortium of Indian investor (Oil India, Indian Oil и Bharat PetroResources) will allow creating a unique consortium on the basis of the Vankor project.
Commenting on the signed documents Igor Sechin said: “We are grateful to our Indian colleagues for the comprehensive approach to the implementation of such a complex structured transaction. A year ago during the Eastern Economic Forum we signed the agreement of sale and purchase of 15% in Vankorneft, today we sign the documents aimed at increasing ONGC’s share in this asset. I am sure, this reflects the level and quality of our cooperation, and I hope will lay the basis for a further development of the business dialogue between the companies.”
September, 4, 2015 Rosneft and Indian ONGC Videsh Limited during the Eastern Economic Forum signed the agreement of sale and purchase of 15% in Vankorneft and shareholders agreement in regard of the enterprise management. The document was signed by Rosneft Chief Executive Officer Igor Sechin and Managing Director of ONGC Videsh Limited Narendra Verma. Since the signing the parties operated with the scope of obtaining the necessary approvals.
May, 31 2016 Rosneft Oill Company and ONGC Videsh Limited have closed the transaction of selling 15% shares in Vankorneft JSC to an Indian company. The achieved evaluation of Vankor Project is USD 3.3 per barrel of hydrocarbon reserves (in terms of 2P category using PRMS method) and reflects high potential of the project’s resource base. With account for the achieved evaluation coefficients, the design value of hydrocarbon reserves of Rosneft exceeds current market capitalization of the Company more than twice.
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.
Recoverable resources of the Vankor field as of 01.01.2016 stood at 361 mln t of oil and condensate and 138 bcm of gas.
In 2015 Vankor produced 22 mln tons of oil and 8.71 BCM of gas. 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.