OVL to Buy 11% Stake in JSC Vankorneft- Green Signal from CCEA (Download PDF)

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OVL’s (ONGC Videsh Limited) proposal to buy 11% stake in JSC Vankorneft got green signal from the Cabinet Committee on Economic Affairs (CCEA). OVL will buy this stake in JSC Vankorneft from Rosneft Oil Company (Rosneft) and National Oil Company of Russia operating the Vankor oil fields.

  • OVL will pay US 930 million dollars.
  • Part of ONGC’s goal to add high quality international assets to India’s Exploration and Production (E&P) portfolio- augmenting India’s energy security.
  • OVL had completed the formalities on acquisition of 15% stake in Vankorneft with  US 1.284 billion dollars in May 2016, which gave OVL 4.11 MMTOE (million metric ton of oil equivalent).
  • Along with OVL, Indian Oil Corporation Limited (IOCL), Oil India Limited (OIL) and Bharat Petro Resources Limited (BPRL) also had parched 23.9% stake in Vankorneft at a cost of US 2020.35 million dollars which provided them 6.56 MMTOE.

 Benefits

  • OVL will get 3.2 Million Metric Ton of Oil Equivalent (MMTOE) till 2017.
  • Indian Oil and Gas companies particularly PSUs will get chance to buy new technologies from Rosneft.

About CCEA

Cabinet Committee on Economic Affairs (CCEA) is one of the vertical committee of the cabinet constituted by the Government of India.

Directs and coordinates all policies and activities economics- including foreign investment that requires policy decisions at highest levels.

Control agriculture product prices fixations

Reviews progress rural development- those concerning small and marginal farmers.

Controls price of industrial raw materials and products, industrial licensing policies.

ONGC Videsh Limited (OVL)

OVL is the international part of ONGC founded on 15 June 1989.

Operates 14 projects in 16 countries.

In 2010 OVL’s oil and gas production is reached at 8.87 MMT of oil and oil equivalent gas (of O+OEG) up from 0.252 MMT of O+OEG in 2002-03.

ONGC is a 100% stake-holder of ONGC Videsh Limited.

- Published/Last Modified on: October 6, 2016

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