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Indian Oil, Oil India, BPCL unit to raise $2 billion

Updated: July 28, 2016 11:51 am

Indian Oil Corporation Ltd (IOC), Oil India Ltd and Bharat Petro Resources Ltd (BPRL), a unit of Bharat Petroleum Corporation Ltd (BPCL), are together looking to raise $2 billion in debt to fund their purchase of stakes in two Russian fields, Vankorneft and Tass-Yuryakh, said four people aware of the development. Russian energy giant OAO Rosneft had in March agreed to sell stakes in the two Siberian oil and gas fields to the state-run Indian oil companies. IOC, Oil India and BPRL signed an agreement to purchase a 29.9 per cent stake in Tass-Yuryakh oilfield from Rosneft. Rosneft owns 80 per cent of the field while BP Plc. holds 20 per cent . The field currently produces 20,000 barrels of oil per day (bopd), with a peak production of 100,000 bopd expected by 2021. IOC, BPCL and Oil India did not respond to e-mails seeking details of their fund-raising plans. Separately, the consortium also signed a deal to acquire up to a 23.9 per cent stake from Rosneft in the Vankorneft field. Rosneft owns 85 per cent of the field, while ONGC Videsh Ltd (OVL) owns 15 per cent. OVL is the overseas exploration and production arm of state-run Oil and Natural Gas Corporation (ONGC).

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