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 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 Rosneft Chairman of the Management Board Igor Sechin and the Managing Director of ONGC Videsh Limited Narendra Verma.

The document was signed in continuation of the agreement of sale and purchase of a 15% share in Vankorneft and the shareholders agreement in regard of the enterprise management (the documents were signed in September, 2015). The parties intend to complete the transaction upon obtaining necessary regulatory and other approvals.

Moreover Rosneft and ONGC 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 Igor Sechin said: “We appreciate the pragmatic approach of our Indian partners, demonstrated within the preparation of the implementation of this high-scale deal, which will bring the cooperation between Russia and India, both in the corporate and intergovernmental sectors, to a whole new level”.

About Vankorneft

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. The initial recoverable reserves of the Vankor field by the January 1st 2015 are estimated at 476 mln. tons of oil and condensate and 173 bln. cubic meters of gas. The acreage of the field is 447 square km.

In 2014 Vankor produced 22 mln tons of oil which exceeds the results of 2013 by more than 3%. The daily output is more than 60, 000 tons. 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.

Oil transportation is carried out through the 556-km long main oil pipeline Vankor-Purpe. The oil produced at the field is one of the main sources for packing the Eastern Siberia – Pacific Ocean pipeline.

About Rosneft

Rosneft is the leader of Russia’s petroleum industry and the world’s largest public oil and gas
company by liquid hydrocarbon production and reserves. The Company’s core operations are in hydrocarbon exploration and appraisal, production of oil, gas and gas condensate, offshore developments, refining, marketing of oil, gas and oil products inside and outside Russia, and investment activity.

Rosneft’s exploration and production geography spans across all key oil and gas provinces in Russia, namely Western Siberia, Southern and Central Russia, Timano-Pechora, Eastern Siberia and the Far East. The Company also implements projects in Kazakhstan, Algeria, Venezuela, Brazil, Vietnam, the UAE, Canada, and in the Gulf of Mexico. Offshore projects, including in the Arctic, take a special place in Rosneft’s portfolio. Rosneft has joined forces with ExxonMobil, Eni and Statoil to develop Russia’s offshore resources.

About ONGC

ONGC’s market capitalisation as on 8th August, 2014 was INR 337,215 Crores (US$ 54.8billion). In the financial year ended 31 March 2014, ONGC Group had produced 59.2 million tonne of oil and oil equivalent gas (mmtoe) (approx. 1.2 mmboe per day), Gross Revenue of INR 174,468 Crore (US$ 30 billion) and total oil and gas reserves of 2004mmtoe as on 31March 2014.