ONGC Videsh Limited announced Thursday that the firm and Rosneft signed an Agreement of Confirmation of successful completion of the first stage pre-completion actions in relation to the creation of a joint venture in JSC “Vankorneft”. The document was signed in the presence of the President of Russia Vladimir Putin and the Prime Minister of India Narendra Modi by Managing Director of ONGC Videsh Limited, Narendra K. Verma and Rosneft Chairman of the Management Board Igor Sechin Dec. 24.
The document was signed in continuation of the agreement of sale and purchase of a 15 percent share in Vankorneft and the shareholders agreement in regard of the enterprise management (the documents were signed in September). The parties intend to complete the transaction upon obtaining necessary regulatory and other approvals.
Moreover Rosneft and ONGC Videsh signed a Memorandum of understanding for cooperation for geologic survey, exploration and production of hydrocarbons onshore and on the continental shelf of the Russian Federation.
The document, signed in continuation of the Memorandum of understanding for cooperation in exploration, appraisal and hydrocarbon production on the continental shelf of the Russian Federation (signed within SPIEF-2014), confirms the intention of parties to continue cooperation in the named areas and expands the sphere of the potential partnership to include Russian onshore hydrocarbon development projects. Particularly the companies will analyze the possibility of expanding their partnership aimed at the development of perspective Rosneft projects in East Siberia.
Commenting on the signed documents Dinesh K.Sarraf, chairman and managing director, ONGC said: “We are happy for the ongoing cooperation between ONGC Videsh and Rosneft and successful completion of the first stage pre-completion actions in relation to the creation of a joint venture in JSC “Vankorneft”. This takes the cooperation between the two companies to a whole new level and lay strong foundation for enlarging the energy cooperation between two nations”.
ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the National Oil Company of India. It is India’s largest oil and gas exploration and production company outside India. ONGC Videsh owns Participating Interests in 36 oil and gas assets in 17 countries and contributes to 14.8 percent of oil and 12.5 percent of oil and natural gas production of India respectively. ONGC Videsh partnership with Rosneft started in 2001 when the former acquired 20 percent stake in the Sakhalin-I oil and gas project in the Russian Federation.
ONGC is India’s largest government-run corporation and produces about 70 percent of India’s crude oil and natural gas. The corporation is the biggest public sector commercial organization in India with current market capitalization of about $31 billion. The Indian government holds a 68.94 percent stake in ONGC.
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