IOCL, OIL and BPRL to raise $2 billion debt to fund stake purchase in Russian fields

Indian Oil Corporation Limited (IOCL), Oil India Limited (OIL) and Bharat Petro Resources Limited (BPRL) are together looking to raise $2 billion in debt to fund their stake purchase in two Russian fields, Vankorneft and Tass-Yuryakh. Russian energy giant Rosneft had agreed to sell stakes in the two Siberian oil and gas fields to the state-run Indian oil companies. IOCL, OIL and BPRL signed an agreement to purchase a 29.9 per cent stake in the Tass-Yuryakh oilfield from Rosneft. Separately, the consortium also signed a deal to acquire an up to 23.9 per cent stake from Rosneft in the Vankorneft field. Rosneft owns 85 per cent of the field, while ONGC Videsh Limited owns 15 per cent. Both the deals are expected to close by September 2016.

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