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Rosneft Oil Company  -  ROSN   

Rosneft sale of 11% stake in Vankor to ONGC

Released 15:08 28-Oct-2016

RNS Number : 7782N
Rosneft Oil Company
28 October 2016
 

Rosneft Successfully Closed the Transaction to Sell 11% shares in Vankorneft JSC

to ONGC Videsh Limited

 

Rosneft Oil Company and ONGC Videsh Limited closed the transaction for the purchase of 11% of Vankorneft JSC to the Indian company.

The base price of the transaction is с. USD 930 mln

Upon the closing of the transaction ONGC Videsh Limited increased its share in in Vankorneft JSC to 26%.

The closed transaction finalizes the creation of an international energy hub, based on Vankorneft JSC. Earlier in October Rosneft and a consortium of Indian companies, consisting of Oil India Limited (the leader of the consortium), Indian Oil Corporation Limited and Bharat PetroResources Limited closed the transaction for the purchase of 23.9% of Vankorneft JSC to Indian companies.

Indian state companies acquired a 49.9% share in one of the biggest large-scale projects of Rosneft of the last decade. Rosneft will retain 50.1% shares of Vankorneft JSC, majority in the Board of directors, control over the operational activity of the entity, 100% control over the infrastructure of the Vankor cluster (including the Vankor-Purpe oil pipeline), which was transferred to 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.

 

Note for editors:

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.

In April 2016 an operator company RN-Vankor was created which controls the regional infrastructure of Vankor cluster (including Vankor-Purpe oil pipeline) and enhances the efficiency and transparency of management of the project.

 

Rosneft Information Division

Phone: + 7 (499) 517-88-97

October 28, 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 obligation to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.


This information is provided by RNS
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Rosneft sale of 11% stake in Vankor to ONGC - RNS