IndianOil, OIl and BPRl sign an agreement with Rosneft for participatory share in subsidiary of Russia’s national oil company
Indian Oil Corporation limited (IndianOil), India's flagship national oil company, Oil India limited (OIl) and Bharat PetroResources limited (BPRl), acting jointly as the Indian Consortium, signed definitive agreements to acquire participatory shares representing 29.9 per cent of the charter capital of llC “TYNGD”, a company organised under the law of Russian Federation, from llC RN Upstream, a wholly-owned subsidiary of Rosneft Oil Company, the National Oil Company (NOC) of Russia. The acquisition is subject to relevant Board, Government and regulatory approvals and is expected to close by September 2016.
Rosneft Oil Company holds 80 per cent shares while BP PlC (UK) holds 20 per cent shares in TYNGD through their respective subsidiaries. TYNGD is currently producing 20,000 bopd with expected peak production of 100,000 bopd by 2021.
In addition to the above, a Heads of Agreement (HoA) was signed for evaluation of acquisition of 23.9 per cent in the CJSC Vankorneft by the consortium of IOCl, OIl and BPRl with Rosneft Oil Company. CJSC Vankorneft is a company organised under the law of the Russian Federation, which is the owner of Vankor Field and North Vankor license. Vankor is Russia’s second largest field by production and accounts for 4 per cent of Russian production and currently producing oil at a peak level of approximately 440,000 bopd.
Additionally, an MoU was signed between Rosneft and the consortium of IOCl, OIl and BPRl for joint evaluation of certain other assets of Rosneft in Russia.
The definitive agreement for TYNGD and HoA for Vankorneft and the MoU for joint evaluation of certain other assets were signed on 16th March 2016 in the presence of Dharmendra Pradhan, Minister of State (Independent Charge), Ministry of Petroleum & Natural Gas, Government of India by Igor Sechin, chairman of the Management Board, Rosneft; B. Ashok, Chairman, Indian Oil Corporation limited; U.P. Singh Chairman and M D, Oil India limited; and D Rajkumar, Managing Director, Bharat PetroResources limited.
Rothschild is the exclusive financial adviser to the Indian Consortium, which is also being advised by CGG as Technical Adviser, latham & Watkins as legal Adviser and EY as accounting and tax adviser.
Dharmendra Pradhan also had a bilateral meeting with Igor Sechin. During the meeting, Pradhan described Russia as a longstanding and time-tested partner of India. He expressed happiness that India and Russia have high levels of understanding and cooperation in almost all areas of the bilateral relationship. Both expressed their commitment to work together to further strengthen the India-Russia relations in the hydrocarbon sector.
K D Tripathi, Secretary (Petroleum), H.E. Alexander Kadakin, Ambassador of Russia to India, senior officials from the Ministry of Petroleum & Natural Gas, CMD/CEOs of Indian public sector oil & gas enterprises and officials from Rosneft were present at the signing event.