OVL, IOC-OIL JV eye higher pie in Russian oil

ONGC Videsh Ltd (OVL) is in talks to raise its stake in Russia’s second biggest oilfield of Vankor while Indian Oil Corp-Oil India are in negotiations for a stake in Taas-Yuriakh Neftegazodobycha oilfield in East Siberia as India looks to deepen energy ties with Russia.

The slew of agreements signed during Prime Minister Narendra Modi’s visit to Russia on Thursday included a document that provides for cooperation between OVL, the overseas arm of Oil and Natural Gas Corp (ONGC), and Russia’s top oil firm Rosneft. OVL was originally interested in taking 25 per cent stake in Vankor but Rosneft in September agreed to sell a 15 per cent interest for $1.268 billion.

Sources said besides formalising the September deal, OVL managing director Narendra K. Verma and Rosneft chairman Igor Sechin also signed a memorandum of understanding in presence of Mr Modi and Russian President Vladi-mir Putin that provides for discussions on raising the stake in Vankor.

IOC and OIL signed a separate MoU with Rosneft where they “agreed to examine the possibility of cooperation in respect of the Taas-Yuriakh Neftegazodob-ycha LLC asset,” IOC-OIL said in statements.

IOC-OIL are looking at 29 per cent stake in Taas-Yuriakh, which operates the Srednebotuobinsk field. It is expected to produce more than five million tonnes of oil annually from 2017. Rosneft in October sold a 20 per cent share in Taas-Yuriakh to BP for $750 million.

OVL and Rosneft signed an agreement on selling 15 per cent stake in Vankor.