IOC intimates of completion of acquisition of stakes in JSC Vankorneft and LLC Taas Yuryakh Neftegazodobycha

On 05 October 2016

Indian Oil Corporation announced that Indian Oil Corporation (IndianOil), Oil India (OIL) and Bharat PetroResources (BPRL), through a joint venture company formed by their wholly-owned subsidiaries in Singapore, on 05 October 2016 completed two transactions, viz., acquisition of 23.9% shares of the charter capital of JSC Vankorneft, a company organised under the laws of the Russian Federation, which is the owner of Vankor and North Vankor Field licenses, from Rosneft Oil Company (Rosneft), a National Oil Company of Russia, and acquisition of 29.9% of the participatory share in the charter capital of LLC Taas Yuryakh Neftegazodobycha (TYNGD), from LLC RN Razvedka I Dobychya, a wholly-owned subsidiary of Rosneft.

The definitive agreements for the Vankor transaction were signed in June 2016 and for the Taas transaction in March 2016.

In JSC Vankorneft, post-closing of transactions, Rosneft will hold about 61.1% shares and ONGC Videsh (through its subsidiary) holds the remaining 15% shares of JSC Vankorneft. In TYNGD, post-closing of the transaction, Rosneft (through subsidiary) will hold about 50.1% share and BP (through subsidiary) holds the remaining 20% share.

Vankor field, located in East Siberia is Russia's second largest field by production and accounts for around 4% of Russian production. In 2015, the Vankor field produced 22 million tonnes of oil and 8.71 BCM of gas. TYNGD is currently producing approx. 1.1 million tonnes of oil and is expected to ramp up the production to 5 million tonnes of oil by 2021.

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