ONGC Videsh Ltd. (OVL), the overseas-focused upstream division of India's state-owned Oil and Natural Gas Corporation Ltd. (ONGC), has commenced discussions with Rosneft to acquire interests in two Siberian fields in Russia, the country's oil minister Dharmendra Pradhan said, as quoted in local daily The Economic Times Wednesday.
While Oil Minister Pradhan did not reveal which fields were involved in the discussions, sources cited by The Economic Times revealed that stakes for sale involved the Vankor and Yurubcheno-Tokhomskoye fields.
An agreement was to have been signed by Rosneft and OVL for the sale of stakes in the two fields during Russian President Vladimir Putin's visit to India in December 2014, but differences between the two parties prevented a formal signing of the deal, the sources added.
The field, operated by East-Siberian Oil and Gas Company was formerly owned by Yukos, which was acquired by Rosneft at an auction in May 2007.
Hydrocarbon reserves at the Yurubcheno-Tokhoskoye field is estimated at around 991 million barrels of oil equivalent, with production planned to start in 2017, The Economic Times reported, adding that peak production from the field is expected to reach up to 5 million tons a year or 100,000 barrels per day in 2019.
OVL, focused on supporting India's energy security through overseas participation in oil and gas exploration and production activities, has been involved in Russia's hydrocarbon sector since July 2001, when the company acquired a 20 percent stake in Sakhalin-1 oil and gas field in the country's Far East.
The Indian upstream firm increased its investment in Russia's upstream sector when it acquired Imperial Energy Corporation PLC., an independent upstream oil exploration and production company with its main activities focused on the Tomsk region of Western Siberia, Russia in January 2009 for $2.1 billion.
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