4 oil PSUs sign deals worth $2 b to raise stake in Russian fields - Feedback

National oil companies — ONGC Videsh Ltd, Oil India Ltd, Indian Oil Corporation Ltd and Bharat PetroResources — and Russia’s Rosneft have signed two separate memorandums of understanding, one Heads of Agreement, and one sale purchase agreement worth $2 billion on Wednesday to increase India’s participation in the Siberian oil and gas fields.

The first MoU was signed between ONGC Videsh Ltd (OVL), the overseas investment arm of ONGC, and Rosneft that would enable the Indian company to raise its stake in Vankorneft, the operator of the Vankor oil and gas field in Siberia, to 26 per cent from the existing 15 per cent. Indian officials said that the additional 11 per cent stake would cost OVL anywhere between $800 million and $900 million. With the additional stake, the company share in production from the Vankor fields will rise by another 45-50,000 barrels of oil equivalent a day, the OVL official said.


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