Rosneft closes transaction to sell 23.9%shares

Rosneft and a consortium of Indian companies comprising Oil India Limited (the leader of the consortium), Indian Oil Corporation Limited and Bharat PetroResources Limited have recently closed the transaction for the purchase of 23.9 percent of Vankorneft JSC to Indian companies. Base price of the transaction is $2.021 billion (RUB 126 billion).
The closed transaction marks the transition to a new level of cooperation in the Russian-Indian relations in the energy area. Indian companies obtain substantial interest in one of the biggest large-scale projects of Rosneft of the last decade, whereas Rosneft retains 61.1 percent shares in the project. Rosneft finalizes the creation of an international energy hub on the basis of the Vankor cluster within short timeframes: currently underway is the preparation to the closing of the deal for the acquisition of an additional 11 percent share in project by ONGC Videsh Limited (after the closing ONGC Videsh Limited’s share in Vankorneft JSC will reach 26 percent). Consequently the share of Indian state companies may increase to 49.9 percent.
The achieved evaluation of Vankor Project is $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.

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