ONGC Videsh Ltd received an approval from Russian Government for acquisition of 15 per cent stake in oil field of Vankor from Rosneft for USD1.268 billion.

India: ONGC Videsh Ltd., the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), obtained necessary approval from Russian Government for buying a 15 per cent stake in oil and gas condensate field in Vankor Field located in Turukhansky district of Russia. The total deal is valued at USD1.268 billion and is considered as OVL’s fourth biggest acquisition ever. The Vankor field is operated by Rosneft and as of January 1, 2015, the initial recoverable reserves are estimated at 476 million tons of oil and condensate and 173 cubic meters of gas. 

Techsci depicts that India has been trying to secure energy resources outside OPEC countries such as Russia. Vankor field was put into operation for last 25 years and will result in assured supply of 3.3 million tons per year of crude oil to India. Vankor have mature fields and OVL will require services from companies operating which are working for EOR (enhanced oil recovery). 

According to released report of TechSci Research “Global Enhanced Oil Recovery Market Forecast & Opportunities, 2020”, the global enhanced oil recovery market is projected to witness growth of around 8% through 2020. Over the next five years, onshore crude oil reserves are expected to witness higher crude oil production through enhanced oil recovery methods compared to off-shore oil reserves. Gaseous enhanced oil recovery methods are expected to lead the global enhanced oil recovery market.