India signs lucrative energy deals with Russia’s Rosneft

• 8 years ago (2016-03-16)

Europe 1061

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The deal with Rosneft, will see Indian companies buy around 30 per cent of the Tass-Yuriakh field, and raise their stake in the Vankor oil field to around 50 per cent. The deal will help Rosneft pay off debts incurred in its $55 billion acquisition of TNK-BP in 2013.

Russia sees the deal as a good way to secure access to a developing market, and it is further hoping to conclude a deal where Rosneft will take a 49 per cent stake in the 400 000 barrels/day Vadinar refinery in western India by the end of June.

Igor Sechin, Rosneft CEO, said: "We are establishing a reliable energy bridge between our countries, which will be developing the interests of both Russia and India”

The deal will see a consortium of Oil India, Indian Oil Corp and Bharat PetroResources (BPRL), a unit of Bharat Petroleum Corp, buy a 29.9 per cent stake in Rosneft’s Taas-Yuriakh field. The companies will buy this stake for a total of $1.121 billion, with $180 million each for future capital expenditure.