Rosneft Succesfully Closed the Transaction to Sell 23.9%shares in Vankorneft JSC to a Consortium of Indian Companies
Rosneft and a consortium of Indian companies, consisting of Oil India Limited (the leader of the consortium), Indian Oil Corporation Limited and Bharat PetroResources Limited closed the transaction for the purchase of 23.9% of Vankorneft JSC to Indian companies.
Base price of the transaction is с. USD 2.021 bln (c. RUB 126 bln).
The closed transaction is a symbolic one for the companies and 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% 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% share in project by ONGC Videsh Limited (after the closing ONGC Videsh Limited’s share in Vankorneft JSC will reach 26%). Consequently the share of Indian state companies may increase to 49.9%.
The achieved evaluation of Vankor Project is USD 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. With account for the multipliers achieved, the design value of hydrocarbon reserves of Rosneft exceeds the current enterprise value of the Company more than twice.
Справка:
On June, 17 2016 Rosneft, Oil India Limited, Indian Oil Corporation Limited and Bharat PetroResources Limited signed within the XX Saint-Petersburg International Economic Forum the agreement of sale and purchase of 23.9% in Vankorneft JSC and the shareholders agreement.
Rosneft subsidiary Vankorneft was established in 2004 to develop Vankor oil and gas condensate field - the largest of the fields, discovered and commissioned in Russia during the last twenty five years. The field is located in the North of Eastern Siberia in Turukhansk District of the Krasnoyarsk Territory 142 km away from Igarka town.
As of 01.01.2016 Vankor field 2P reserves by PRMS classification are 265 mln tons of oil and condensate and 88 bcm of gas.
22 mln tons of oil and 8.71 bcm of gas were produced at Vankor in 2015. Vankor recovery factor is one of the highest in Russia due to the applied technological solutions. High flow rate of the field is secured by the drilling of injection directional and producing wells with horizontal completion. Oil production process is fully automated.
In April 2016 an operator company RN-Vankor was created which controls the regional infrastructure of Vankor cluster (including Vankor-Purpe oil pipeline) and enhances the efficiency and transparency of management of the project.
Rosneft Information Division
Tel.: + 7 (499) 517-88-97
October, 5, 2016
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