Russian Rosneft signs deals with Indian state oil firms for Vankor project

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Russia’s Rosneft said it had signed various deals with Indian state oil firms aimed at creating a unique international consortium around its Vankor project.

It said in a statement that Rosneft, Oil India, Indian Oil and Bharat Petroresources had signed an agreement in respect to the acquisition by a group of Indian investors of a 23.9 percent share in Vankroneft.

The document, which envisages the possible execution of legally binding documents with regard to the sale and purchase transaction, was signed by Rosneft Chairman of the Management board Igor Sechin during his visit to India.

Rosneft also signed with ONGC Videsh Limited a memorandum of understanding for cooperation in respect of the Vankor project, envisaging the prospective increase to 26 percent of the share of the Indian company in Vankroneft.

“The document also oversees the analysis of the joint trading development’s potential, including the possibility of entering into long-term crude-oil supply contracts. Earlier, the companies signed the agreement of sale and purchase of 15 percent in Vankorneft and shareholders agreement that calls for joint management,” the statement said.

Rosneft, Oil India, Indian Oil and Bharat Petroresources separately signed a memorandum of understanding for cooperation in the Vankor project, envisaging the joint analysis of a potential partnership with the scope of the development of the Suzunskoye, Tagulskoye and Lodochnoye fields.

Vankorneft, Rosneft subsidiary, was established in 2004 for development of Vankor oil and gas condensate field – the largest of the fields, discovered and put into operation in Russia in the last 25 years. The field is situated in the Turukhansky district of Krasnoyarsk Territory, 142 km away from the city of Igarka.

Recoverable resources of the Vankor field as of 01.01.2016 stood at 361 mln t of oil and condensate and 138 bcm of gas.

In 2015 Vankor produced 22 million tonnes of oil and 8.71 BCM of gas. Thanks to implemented technological solutions, oil recovery factor at Vankor is one of the highest in Russia. The field is drilled with the inclined- and production- injection wells with horizontal ending which provides high well flow rates. The process of oil production is fully automated.

On December, 25 Rosneft and ONGC Videsh Limited 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 Vankorneft. The document was signed in the presence of the President of Russia Vladimir Putin and the Prime Minister of India Narendra Modi.

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