Indian companies buy into Rosneft’s Vankor and Taas-Yuriakh oil fields

Rosneft CEO Igor Sechin and Indian Energy Minister Dharmendra Pradhan 16-03-16Vankor: Four of India’s state-run oil and gas companies yesterday signed deals worth up to $4bn with Rosneft which will see them acquire stakes in some of the Russian energy giant’s most promising Siberian assets. Under the terms of the deals – the result of Prime Minister Narendra Modi’s drive to cut India’s oil imports by 10% over the next six years – India’s Oil and Natural Gas Corp will raise its stake in the Vankor oil field to almost 50%, while a consortium consisting of Oil India, Indian Oil Corp and Bharat PetroResources (BPRL) will buy a 30% stake in the field.
The transactions will help Rosneft, the world’s biggest listed oil producer by output, to pay off debts incurred in its $55bn acquisition of TNK-BP in 2013. Strategically, Russia is also keen to develop and deepen its Soviet-era economic ties with India and sell oil to one of the world’s fastest-growing economies at a time when its own economy is stagnating.
“We are establishing a reliable energy bridge between our countries, which will be developing the interests of both Russia and India,”said Rosneft CEO Igor Sechin said.

Source: reuters