ONGC Videsh Vankorneft Acquires 15% Stake in Namibia’s Offshore Block

ONGC Videsh Vankorneft Acquires 15% Stake in Namibia’s Offshore Block
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AP Photo/ Hasan JamaliBusiness23:08 21.11.2017(updated 23:20 21.11.2017) Get short URL
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ONGC Videsh has started to bring more foreign oil and gas assets under its ambit amid a delay in awarding of Farzad B gas field by Iran.

New Delhi (Sputnik) — India’s state-owned oil & gas firm ONGC Videsh has acquired 15% stake in Namibia’s offshore Block 2012A from Tullow Oil through its wholly owned subsidiary ONGC Videsh Vankorneft Pte. Ltd. (OVVL). The block is presently operated by Eco Oil and Gas Namibia with 32.5% stake. ONGC Videsh had last month bought a 30 percent stake in PEL 0037 from Tullow Oil.

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ONGC Videsh Vankorneft Pte Ltd directly holds 26 % stake in the joint stock company ‘Vankorneft’, a company incorporated under the laws of the Russian Federation. The initial 15% stake was acquired by ONGC Videsh Vankorneft Pte Ltd on 31 May 2016. The subsequent 11% stake was acquired by OVVL from Rosneft on 28 October 2016.

“Coming soon after the completion of the first acquisition of 30% participating interest in PEL-0037 from Tullow on 3 October 2017, the completion of the present transaction would strengthen ONGC Videsh partnership with Tullow and its other partners including NAMCOR, the national oil company of Namibia and would mark consolidation of ONGC Videsh interest in Namibian offshore,” ONGC Videsh said in a statement on Tuesday.

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The acquisition is consistent with ONGC Videsh’s strategic objective of adding high-quality exploration and production assets to its existing E&P portfolio. Presently, ONGC Videsh has 39 projects in 18 countries and produces about 285,000 barrels of oil and oil equivalent gas per day and has total oil and gas reserves of about 704 million tons as on 1 April, 2017.

Source.