Indian firms pick up Rosneft assets

NEW DELHI, March 16, 2016 – Indian multinational Oil and Natural Gas Corporation (ONGC), Oil India, Indian Oil and Bharat Petroresources are set to acquire stakes in Russian assets held by Rosneft, the company reported on Wednesday.

Signed upon a visit to India by Rosneft CEO Igor Sechin, the agreement with ONGC entails the latter raising its share in the Vankor field from 15% to 26%. Upon finalisation of the deal, Oil India, Indian Oil and Bharat Petroresources will together acquire 23.9% in the field, which produced some 442,000 bopd in 2014.

The three mentioned companies also entered into an agreement for a 29.9% stake in the Taas-Yuriakh field, reportedly worth USD 1.7 billion. In 2015, Rosneft shareholder BP acquired a 20% stake for USD 750 million.

On his visit, Sechin also disclosed plans to buy a 49% share in the Essar Oil Refinery, located in Vadinar. “We’ve had constructive talks in the course of the visit, and arranged a preliminary settlement regarding the procedures to finalise the deal […] The deal will be closed in 2016,” the Rosneft head said.

The Vadinar facility has a refining capacity of 405,000 barrels per day.

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