Sum of deal for sale of 23.9% in Vankorneft to Indian consortium is more than $2 bln - Sechin
MOSCOW. June 22 (Interfax) -The sum of the deal on the sale of 23.9% of Vankorneft to a consortium of Oil India, Indian Oil and Bharat Petroresources amounted to more than $2 billion, Rosneft head Igor Sechin said, confirming sources' information, during an interview with the Rossiya-24 television channel on Tuesday.
"This is true, it really is so," he said, commenting on what the interviewer said: "according to the media's information, the sum of the deal amounted to more than $2 billion."
"We managed to convince our partners that the fundamental value of production projects does not depend on the current prices. And we managed even to improve the initial proposals," he said.
Sechin said that Rosneft's Indian partners "are convinced that all this work will be aimed at, in particular, guaranteeing the energy security of India."
"The fact that our Indian partners are increasing their stake in the capital of Vankorneft allows us to make a decision on the development of the Eastern Siberia cluster, we will develop production in this region and organize new projects," he said.
The conclusion of the deal is expected after the completion of all agreements and approvals on the part of state agencies. After closing the deal, consortium representatives will join the board of directors of Vankorneft.
Rosneft will maintain a majority stake, the majority of positions on the board of directors, control over operating activity, and also control of the infrastructure cluster, including the Vankor-Purpe oil pipeline.
Indian Oil and Gas Minister Dharmendra Pradhan told journalists that it is planned to close the deal in September of this year. "The baseline price of the deal is the same as the purchase of 15% of Vankorneft by ONGC, slightly higher," the minister said.
At the end of May, another company, ONGC Videsh signed a deal on the purchase of a 15% stake in Vankorneft. The price of the deal amounted to $1.27 billion.