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    Rosneft Sells Stake in Taas-Yuryakh Neftegasodobycha Field to Indian Investors

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Summary

Rosneft on Wednesday signed an agreement to sell 29.9 percent stake in Taas-Yuryakh Neftegasodobycha oil and gas field to a consortium of Indian firms.

by: Shardul

Posted in:

Asia/Oceania

Rosneft Sells Stake in Taas-Yuryakh Neftegasodobycha Field to Indian Investors

Rosneft on Wednesday signed an agreement to sell 29.9 percent stake in Taas-Yuryakh Neftegasodobycha oil and gas field to a consortium of Indian firms.

Oil India, Indian Oil and Bharat Petroresources signed a legally binding share sale agreement with Rosneft during Rosneft Chairman of the Management Board Igor Sechin’s visit to India.

The document provides for the entry of the Indian companies' consortium into the joint venture (JV) established by Rosneft and BP on the basis of Taas-Yuryakh Neftegasodobycha. Price parameters of the transaction with Indian companies are similar to the terms of the agreement with BP signed at the St-Petersburg Economic Forum in June 2015. Rosneft will retain a majority stake in the JV.

The transaction will be closed after set of condition precedents are accomplished and Rosneft’s Board of Directors approval is obtained, Rosneft said in a statement.

"The joint venture with our Indian and British partners allows to make the most of the technological, resource and commercial potential of all of the JV’s participants. Joined efforts of Rosneft, BP, Oil India, Indian Oil and Bharat Petroresources allow a significant acceleration of the upstream projects’ implementation by virtue of increasing JV financial potential as well as open new prospects for marketing the East Siberian hydrocarbons," Sechin said.

Vankor deal

Rosneft and the three Indian firms also signed a heads of agreement on acquisition of a 23.9 percent share in Vankorneft project. The document envisages the possible execution of legally binding documents with regard to the sale and purchase transaction. It also envisions joint analysis of a potential partnership with the scope of the development of the Suzunskoye, Tagulskoye and Lodochnoye fields.

Rosneft also signed with ONGC Videsh Limited a memorandum of understanding for cooperation in respect of the Vankor project, envisaging the prospective increase to 26 percent of the share of the Indian company in Vankroneft. 

The Russian firm stated that the deal which is worth almost $1.3 billion is expected to be closed in the short term.

Recoverable resources of the Vankor field as of January 1, 2016 stood at 361 mn tons of oil and condensate and 138 bcm of gas.

In 2015 Vankor produced 22 mn tons of oil and 8.71 bcm of gas.