14 Nov 2023 16:54

Vankorneft tranfers India's ONGC 4.5 bln rubles in dividends for H1

MOSCOW. Nov 14 (Interfax) - ONGC will receive 4.517 billion rubles in dividends from Vankorneft for H1, the Indian company said in a statement.

The relevant decision was made on September 29.

As reported, on June 14 ONGC received 4.829 billion rubles of dividends for H2 2022. The company recalled that repatriation of accrued income from participation in the project is subject to restrictions. The amount of 11.412 billion rubles [for the whole of 2022, together with interest] is placed on an account in the "Commercial Indo Bank" (Moscow, Russia), and is "available for use in the country and currency of receipt".

It is noted that production at Vankorneft assets continues in accordance with the business plan.

Last November, ONGC reported that it faced a problem with withdrawal of dividends from Vankorneft due to the ownership scheme. The Indian company participates in the project through an entity in Singapore, which is on the list of unfriendly countries approved by the Russian authorities.

Special C-type ruble accounts were introduced by presidential decree on March 5, 2022, and are one of the central elements of the capital restrictions construct created in response to sanctions on Russia. These accounts block income on securities owned by "unfriendly" non-residents. They can be converted into currency only with the permission of the Russian authorities.

Vankorneft owns the key field of the Vankor cluster - the Vankor field. In 2021, 10.5 million tonnes of oil were produced there, which is 7% lower than in the previous year.

Since 2016, Indian companies (ONGC Videsh Ltd, Oil India Limited, Indian Oil Corporation and Bharat Petroresources) own 49.9% of Vankorneft (ONGC's associated stake is 26%), with Rosneft holding the rest.

Commercial Indo Bank is a Russian subsidiary of India's largest bank, the State Bank of India.