OVL eyes $900 mn pie of Rosneft field promised to China
Energy wars Russia, pressured by western sanctions and falling crude prices, had offered 10% of the Vankor field to China National Petroleum Corp
Oil & Natural Gas Corp (ONGC) is seeking through its overseas unit to buy a stake in Russia’s second-largest oil producing development from OAO Rosneft, according to two people with direct knowledge of the plan.
ONGC Videsh Ltd is in discussions to purchase a share of the Vankor oil field in East Siberia, said the people, who asked not to be identified because discussions are ongoing. The New Delhi-based company is seeking to pay $900 million for the stake, which will secure about 3.5 million metric tonne of oil a year (about 70,290 barrels a day), and expects to sign a deal as early as next month, one of the people said.
Vankor, which started production in 2009, is one of the largest oil fields in Russia, with recoverable reserves estimated at about 500 mt. Vankor pumped about 40.2 million barrels of oil in January to March (about 447,000 barrels a day), according to the company.
Russia, pressured by western sanctions and falling crude prices, offered 10% of the field to China National Petroleum Corp during President Xi Jinping’s visit to Russia in November last year.
ONGC, India’s biggest energy explorer, plans to spend Rs 11 lakh crore by 2030 to add reserves in India and overseas and reverse a decline in output from aging domestic fields. OVL, which spent $6 billion in the past two years buying assets outside India, plans to more than double its output from overseas fields in four years.
OVL owns 20% in the Sakhalin-1 project, off Russia’s far eastern coast, which it acquired in 2001. The project produces both oil and gas and OVL gets a share of the output or revenue from the sale.
Oil & Natural Gas Corp (ONGC) is seeking through its overseas unit to buy a stake in Russia’s second-largest oil producing development from OAO Rosneft, according to two people with direct knowledge of the plan.
ONGC Videsh Ltd is in discussions to purchase a share of the Vankor oil field in East Siberia, said the people, who asked not to be identified because discussions are ongoing. The New Delhi-based company is seeking to pay $900 million for the stake, which will secure about 3.5 million metric tonne of oil a year (about 70,290 barrels a day), and expects to sign a deal as early as next month, one of the people said.
Vankor, which started production in 2009, is one of the largest oil fields in Russia, with recoverable reserves estimated at about 500 mt. Vankor pumped about 40.2 million barrels of oil in January to March (about 447,000 barrels a day), according to the company.
Russia, pressured by western sanctions and falling crude prices, offered 10% of the field to China National Petroleum Corp during President Xi Jinping’s visit to Russia in November last year.
ONGC, India’s biggest energy explorer, plans to spend Rs 11 lakh crore by 2030 to add reserves in India and overseas and reverse a decline in output from aging domestic fields. OVL, which spent $6 billion in the past two years buying assets outside India, plans to more than double its output from overseas fields in four years.
OVL owns 20% in the Sakhalin-1 project, off Russia’s far eastern coast, which it acquired in 2001. The project produces both oil and gas and OVL gets a share of the output or revenue from the sale.
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