Rosneft and ONGC confirm successful cooperation for JSC Vankorneft, onshore Russian Federation
MOSCOW -- Rosneft and ONGC Videsh Ltd. have signed an Agreement of Confirmation of successful completion of the first stage pre-completion actions in relation to the creation of a joint venture in JSC “Vankorneft”.
The document was signed in the presence of the President of Russia Vladimir Putin and the Prime Minister of India Narendra Modi by Rosneft Chairman of the Management Board Igor Sechin and the Managing Director of ONGC Videsh Limited Narendra Verma.
The document was signed in continuation of the agreement of sale and purchase of a 15% share in Vankorneft and the shareholders agreement in regard of the enterprise management (the documents were signed in September, 2015). The parties intend to complete the transaction upon obtaining necessary regulatory and other approvals.
Moreover Rosneft and ONGC signed a Memorandum of understanding for cooperation for geologic survey, exploration and production of hydrocarbons onshore and on the continental shelf of the Russian Federation.
The document, signed in continuation of the Memorandum of understanding for cooperation in exploration, appraisal and hydrocarbon production on the continental shelf of the Russian Federation (signed within SPIEF-2014), confirmed the intention of parties to continue cooperation in the named areas and expands the sphere of the potential partnership to include Russian onshore hydrocarbon development projects. Particularly the companies will analyze the possibility of expanding their partnership aimed at the development of perspective Rosneft projects in East Siberia.
Commenting on the signed documents Igor Sechin said, “We appreciate the pragmatic approach of our Indian partners, demonstrated within the preparation of the implementation of this high-scale deal, which will bring the cooperation between Russia and India, both in the corporate and intergovernmental sectors, to a whole new level.”
Vankorneft, Rosneft subsidiary, was established in 2004 for development of Vankor oil and gas condensate field – the largest of the fields, discovered and put into operation in Russia in the last 25 years. The field is situated in the Turukhansky district of Krasnoyarsk Territory, 142 km away from the city of Igarka. The initial recoverable reserves of the Vankor field by the January 1st 2015 are estimated at 476 million tons of oil and condensate and 173 Bcmg. The acreage of the field is 447 sq km.
