Oil and Natural Gas Corp (ONGC) on Wednesday said that it has signed definitive agreements with Rosneft, the national oil company of Russia for acquiring an additional 11% stake in JSC Vankorneft.

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Earlier, ONGC Videsh had successfully closed the acquisition of 15% shareholding interest on May 31, 2016. After the closing of the present transaction, ONGC Videsh will raise its participation share in Vankorneft to 26%.

The acquisition is subject to relevant Board, Government and Indian and Russian regulatory approvals and is expected to close by end of 2016.

"Vankor is Rosneft's (and Russia's) second largest field by production and accounts for 4% of Russia's production. The daily production from the field is around 421,000 barrels per day (bpd) of crude oil on an average and together with the earlier acquisition of 15%, ONGC Videsh's share of daily oil production from Vankor will be about 110,000 bpd," ONGC said in a statement.

The acquisition of the additional 11 % bears significant strategic importance and would add about 30% to ONGC Videsh's existing production at the current rate and about 2.2 million tonnes of oil and 1 billion cubic metres of gas annually, the statement said.

The present transaction provides an opportunity to ONGC Videsh to enhance its presence in Russia and is consistent with its stated strategic objective of adding high quality international assets to its existing E&P portfolio, the company said in the press release.

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