ONGC Videsh Limited signed definitive agreements to acquire up to 15% shares in CSJC Vankorneft, a company organized under the law of Russian Federation which is the owner of Vankor Field and NorthVankor license. Rosneft Oil Company, NOC of Russia holds 100% shares in Vankorneft. The acquisition is subject to relevant Board, Government and regulatory approvals and is expected to close by mid of 2016.

The agreement was signed by Mr. Narendra K. Verma, CEO & Managing Director, ONGC Videsh and Mr. Igor Sechin, Chairman Board of Directors, Rosneft during the Eastern Economic Forum (EEF) held in Vladivostok today in the presence of H.E. Mr. Vladimir Putin, President of Russian Federation.

Vankor is Rosneft's (and Russia's) second largest field by production and accounts for 4% of Russian production. The daily production from the field is around 442,000 bpd of crude oil on an average with ONGC Videsh’s share of daily oil production at about 66,000 bpd.

The present transaction provides an opportunity to ONGC Videsh to enhance its presence in Russia and is consistent with its stated strategic objective of adding high quality international assets to its existing E&P portfolio. This acquisition also has significant strategic importance to India, both in terms of augmentation of India’s Energy Security as well as enhancing India’s stature in the global political and economic arenas.

Citi worked as the sole exclusive financial advisor whereas Dentons worked as legal advisor to ONGC Videsh on this transaction

About ONGC Videsh

ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the national oil company of India, and is India’s largest international oil and gas E&PCompany. At present, ONGC Videsh has 36 projects in 17 countries including Azerbaijan, Bangladesh, Brazil, Colombia, Iraq, Kazakhstan, Libya, Mozambique, Myanmar, Russia, South Sudan, Sudan, Syria, Venezuela, Vietnam and New Zealand. ONGC Videsh is currently producing 167,000 barrels of oil and oil equivalent gas per day and has total oil and gas reserves of about 647 mmtoe as on 31st March 2015. For more information visit www.ongcvidesh.com

About ONGC

ONGC’s market capitalisation as on 3rd September 2015, was INR 1,960 Billion (US$ 29.6 Billion). During the financial year ended 31st March 2015, ONGC Group had produced 59.71 MMTOE (approx..1.2 million of oil equivalent per day); the gross revenue was INR 1,608.95 Billion (US$ 26.31 Billion) and total oil and gas reserves where 2,035 mmtoe as on 31st March 2015. For more information visit www.ongcindia.com

About Rosneft

Rosneft is the leader of Russia’s petroleum industry and the world’s largest publicly traded petroleum company. Rosneft activities include hydrocarbon exploration and production, upstream offshore projects, hydrocarbon refining, and crude oil, gas and product marketing in Russia and abroad.

The Company is included in the list of strategic companies and organizations of Russia. The main Company shareholder (69.50%) is OJSC ROSNEFTEGAZ, a 100% state-owned company. BP owns another 19.75%, and the remaining 10.75% of shares are publicly traded. Rosneft conducts its exploration and production activities in all key hydrocarbon provinces of Russia including West Siberia, Southern and Central Russia, Timan-Pechora, East Siberia, Far East, and Russian continental shelf including the Arctic region. The Company is also embarking on and implementing a number of projects in Venezuela, Brazil, USA, Canada, UAE, Algeria, Norway, Kazakhstan, Vietnam and Abkhazia.

Issued By
Oil and Natural Gas Corporation Ltd.
Corporate Communications, New Delhi,
Phone: +91-11-23320032
Tele-Fax: 011-23357860
Mail: ongcdelhicc@ongc.co.in