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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
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