Oil India completes 50% acquisition in Western Siberian block

July 7, 2014

Exploration and production firm Oil India Ltd (OIL) on Friday announced it has completed acquisition of 50 per cent shareholding in a subsidiary of PetroNeft Resources, which owns a block in Western Siberia, Russia. Current production from the block – License 61 – located on the eastern side of the Ob river in the oil-bearing region of Tomsk Oblast, is 2,100 barrels of oil per day. The 4,991 sq km license consists of seven oil fields and over 24 identified prospects and leads.

The total commitment from OIL will be $ 85 million, which is inclusive of $45 million for development capex. The effective date of the acquisition is January 1, 2014. Production at the block began in 2010.

It marks OIL’s entry into Russia and is significant addition to the company’s overseas E&P portfolio, the State-owned company said in a regulatory filing to the Bombay Stock Exchange.

Last month, OIL had also signed a memorandum of understanding with Russia’s Gazprom International BV for joint pursuit of exploration opportunities across the globe. The MoU was also for collaboration of liquefied natural gas (LNG).

The company said it has completed the acquisition of 50 per cent shareholding in WorldAce Investments Ltd (WorldAce), a Cyprus-based wholly owned subsidiary of PetroNeft Resources. PetroNeft Resources Plc is listed at Dublin and London Stock Exchanges.

Copyright, The Hindu, 2014.