ONGC Videsh, the overseas investment arm of Oil & Natural Gas Corporation (ONGC), the national oil company of India has acquired 15% stake in Russia's Vankorneft, Rosneft subsidiary, for approx. USD 1.35 billion.

The completion of this transaction is subject to necessary regulatory and other approvals.

The company said, 'Rosneft and Indian ONGC Videsh Limited during the Eastern Economic Forum signed the agreement of sale and purchase of 15% in Vankorneft and shareholders agreement in regard of the enterprise management.'

'ONGC Videsh will have two places in the Board of Directors of Vankorneft. Rosneft will create an operator company that will allow more efficient management of both Vankor field and other company's licenses in this region,' it added.

The agreements on considering acquisition of minority share in Vankorneft by ONGC Videsh were reached on July 8, 2015 during the meeting between the President of the Russian Federation Vladimir Putin and Prime Minister of India Narendra Modi in Ufa.

Commenting on the stake sale, Igor Sechin, Chairman of Rosneft said, 'Collaboration in such a large-scale project will allow establishing a brand new level of strategic cooperation between Rosneft and ONGC Videsh. This will accelerate the development of our partnership, in other large-scale oil and gas upstream projects in the region.'