Please activate JavaScript in your browser to use all interface options.

« March, 2024
Mo Tu We Th Fr Sa Su
Main page News room Press releases
Press releases

Rosneft Oil Company has successfully closed the transaction of selling 15% shares in Vankorneft JSC to ONGC Videsh Limited

31 May 2016

Rosneft Oill Company and ONGC Videsh Limited have closed the transaction of selling 15% shares in Vankorneft JSC to an Indian company. This transaction shows that the project portfolio of Rosneft Oil Company can be re-evaluated more than twice.

Base price of the transaction is USD 1.27 billion (about 83 billion RUB).

The closed transaction is symbolic for both the companies and marks transition to a new level of cooperation in the Russian-Indian relations in sphere of energy. ONGC gets substantial interest and relevant rights in one of the biggest large-scale projects of Rosneft of the last decade, whereas Rosneft retains major shares in the project and will operate on the field through the operator company RN-Vankor.

The achieved evaluation of Vankor Project is USD 3.4 per barrel of hydrocarbon reserves (in terms of 2P category using PRMS method) and reflects high potential of the project’s resource base. With account for the achieved evaluation coefficients, the design value of hydrocarbon reserves of Rosneft exceeds current market capitalization of the Company more than twice.

Note for editors:

On September 4, 2015 Rosneft and Indian ONGC Videsh Limited signed Sale and Purchase Agreement for Vankorneft a 15% share and shareholder agreement on company management at the Eeastern Economic Forum. The document was signed by Igor Sechin, Rosneft Chairman of the Management Board, and Narendra Verma, Managing Director of ONGC Videsh Limited.

Rosneft subsidiary Vankorneft was established in 2004 to develop Vankor oil and gas condensate field - the largest of the fields, discovered and commissioned in Russia during the last twenty five years. The field is located in the North of Eastern Siberia in Turukhansk District of the Krasnoyarsk Territory 142 km away from Igarka town.

As of 01.01.2016 Vankor field 2P reserves by PRMS classification are 265 mln tons of oil and condensate and 88 bcm of gas.

22 mln tons of oil and 8.71 bcm of gas were produced at Vankor in 2015. Vankor recovery factor is one of the highest in Russia due to the applied technological solutions. High flow rate of the field is secured by the drilling of injection directional and producing wells with horizontal completion. Oil production process is fully automated.

On December 2015 Rosneft and ONGC Videsh Limited signed an Agreement on the confirmation of successful completion of the first preparation phase for the completion of the transaction to establish Vankorneft based JV. The document was signed in the presence of Russian President Vladimir Putin and Indian Prime Minister Narendra Modi.

The operator company RN-Vankor was created which will control the total infrastructure of Vankor cluster (including Vankor-Purpe oil pipeline) and make it possible to enhance the efficiency and transparency of management of the project.

Rosneft information division
May 31, 2016

These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.