India's oil and gas company ONGC is to take part in the development of the Vankor cluster oil fields. The Russian oil giant Rosneft addressed ONGC Videsh Ltd (OVL), a subsidiary of ONGC with the proposal. Participation of such a large company is expected to ensure a confident progress in a joint development of the rich deposit. This is not the first invitation to foreign counterparts to work in the Krasnoyarsk region. Previously, negotiations were with Chinese corporations; however, a clear decision on this issue did not follow. Currently, Rosneft’s subsidiary Vankorneft implements the development of the Vankor field. According to the agreement, Vankorneft could offer up to 10 percent stake in the Vankor cluster oil fields. The amount of the potential deal is estimated at $1 billion.
Vankorneft is Rosneft’s second largest oil-producing enterprises followed after RN-Yuganskneftegaz. The Vankor deposit was discovered back in 1988. It is located above the Arctic Circle, 140 km off the small town of Igarka, Krasnoyarsk Territory. The exploration on the site started in 2008, 20 years after it was found. According to official data, annual oil production of Vankorneft is 21.4 million tons. Meanwhile, RN-Yuganskneftegaz produces 66.1 million tons of oil a year. Vankor’s recoverable reserves are 490 million tonnes of hydrocarbons. Rosneft acts as an operator of the field.