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ONGC and Rosneft entered into an Agreement of sale and purchase of 11% in Vankorneft JSC

ONGC Videsh Limited and NK Rosneft PJSC entered into an Agreement of sale and purchase of 11% in Vankorneft JSC and a shareholders’ agreement. The documents were signed in the course of the meeting of Managing Director of ONGC Videsh Limited Narendra Verma and Chief Executive Officer of NK Rosneft PJSC Igor Sechin.

The finalized transaction will be completed after necessary regulatory and other approvals are obtained.

After closing of the transaction ONGC will increase its participation share in Vankorneft JSC up to 26%. Therefore, the share of Indian state companies can increase to 49.9%.

Implementation of the conditions of signed documents together with the ongoing transaction for purchase of 23.9% share in Vankorneft JSC by a consortium of investors (Oil India, Indian Oil and Bharat PetroResources) will allow creating a unique international energy hub, which will considerably improve the production potential of Vankor cluster.

After signing the documents Managing Director of ONGC Videsh Limited Narendra Verma expressed his gratitude to the Russian colleagues for their professional approach to implementation of such a complex transaction, and also noted that this transaction reflects the quality of cooperation and will serve as a basis for further development of the dialog between the companies.

On September 4^th, 2015, during the Eastern Economic Forum, NK Rosneft PJSC and Indian ONGC Videsh Limited signed the Agreement of sale and purchase of 15% in Vankorneft JSC and the shareholder’s agreement in respect of the enterprise management. The document was signed by Managing Director of ONGC Videsh Limited Narendra Verma and Rosneft Board Chairman Igor Sechin. Since the moment of signing, work on obtaining all necessary approvals was carrying out.

On May 31^th, 2016, ONGC Videsh Limited and Rosneft completed the transaction of selling 15% shares in Vankorneft JSC to the Indian company.

Vankorneft JSC was established in 2004 for development of Vankor oil and gas condensate field – the largest of the deposits discovered and put into operation in Russia for the last five years. The field is located in the North of the Eastern Siberia in Turukhanskiy region of Krasnoyarsk Krai, 142 km away from the city of Igarka.

As of 01.01.2016, hydrocarbon reserves of 2R category in accordance with PRMS classification of Vankor field make 265 mln. tons of oil and condensate and 88 bln. cubic meters of gas.

In 2015, 22 mln. tons of oil and 8.71 bln. cubic meters of gas were recovered at Vankor. Thanks to implemented technological solutions, oil recovery factor at Vankor is one of the highest in Russia. The field is drilled with inclined and production injection wells with horizontal ending, which provides a high well flow rates. Oil recovery process is fully automated.