Russia’s Rosneft signs sale of 23.9% in Vankorneft to Indian cos

ST. PETERSBURG, Jun 17 (PRIME) -- Russian state-run oil major Rosneft has signed a deal to sell 23.9% in its unit Vankorneft, which develops the Vankor field in East Siberia, to Indian companies Oil India, Indian Oil and Bharat Petro Resources, Rosneft said in a statement Friday.

The deal will be closed after approvals of all necessary regulators and authorities. After the deal is closed, representatives of the Indian consortium will enter Vankorneft’s board of directors, while Rosneft will keep a majority stake in the company, a major part of the board’s seats, control over the company’s operation and 100% control over the company’s infrastructure.

Narendra Verma, managing director at India’s ONGC Videsh Limited, which owns 15% in Vankorneft, said separately that India will receive 11 million tonnes of oil per year from Vankorneft after all deals regarding Indian companies’ entrance to the Vankor project are completed. Production at the field is at its peak, and it is falling, but this does not concern ONGC.

“No, this is a natural process. A field has a peak of production, and it falls after that,” he said.

In May, Rosneft closed a deal to sell a 15% stake to ONGC for U.S. $1.27 billion. In March, Rosneft and ONGC signed a memorandum, under which the Indian company may increase its stake in Vankorneft to 26%.

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