$3.24-bn Rosneft deal gets govt all-clear

The Union Cabinet on Wednesday gave its nod to a consortium of Indian Oil Corporation, Oil India and Bharat PetroResources for acquiring stakes in two Russian oilfields for around $3.24 billion.

The consortium will acquire 23.9 per cent stake in Vankorneft and 29.9 per cent stake in TaasYuryakh fields from Rosneft. Rosneft operates Vankor and Taas-Yuryakh oilfields. The acquisition of stake in Vankorneft will provide 6.56 million metric tonne of oil equivalent (MMtoe) and 29.9 per cent stake in Taas-Yuryakh will provide 0.5 MMtoe initially and 1.5 MMtoe by 2019. The purchase is in line with India’s objective of adding high quality international assets to its exploration and production portfolio, thereby augmenting the country’s energy security.