Coal News We love to talk!

JUL 31 2017

HPCL may shelve plans to buy stakes in Russian oilfields

  • Economic Times, ET Bureau / Hyderabad
  • Created: Mon 31st JUL 2017


With oil explorer ONGC’s acquisition of HPCL now well on track to be completed by this fiscal, the latter’s plans to pick up stakes in upstream fields in Russia will be shelved.

Earlier, an HPCL official had told BusinessLine the company was keen to pick up stakes in Russian oilfields — along with ONGC (through ONGC Videsh Ltd), Oil India, Indian Oil Corporation and Bharat PetroResources (part of BPCL) — in several instalments starting from 2015. The four companies now own 49.9 per cent of Vankorneft, a subsidiary of Russian state-owned oil company Rosneft that owns and operates the Vankor cluster.

The Vankor cluster comprises three small fields — Suzunskoye, Tagulskoye and Lodochnoye — around Vankor in eastern Siberia. It is Rosneft’s second largest field in terms of production and, according to reports, it accounts for about 4 per cent of the country’s annual oil production, pumping out 421,000 barrels of crude a day.

An HPCL official had earlier said the company was looking at picking up stakes in satellite fields in the region and was evaluating opportunities. However, the plan has now changed, with the company being merged with ONGC.

Sumit Pokharna, Deputy Vice-President, Kotak Securities, said: “The merger means ONGC will now focus on the upstream. HPCL’s plans to pick up stakes in oilfields — like other PSU oil marketers — may now be cancelled out.”


Oil ONGC ONGC Videsh Russia Hindustan Petroleum Corporation Limited Bharat Petroleum Corporation Limited India BPCL ongc

Related News

  • Government softens gas price rise blow  Read more
  • Government plans to revise tariff for power projects hit by coal crunch  Read more
  • India imposes anti-dumping duty on solar cell imports  Read more
  • IOC, BPCL, HPCL to get Rs 11,000 crore on subsidy in Q1  Read more
  • DIPP turns down oil companies like ONGC, Oil India, Jubilant Energy and Assam Company demand for sops on N-E activities  Read more
  • 107 sunshine countries could weld together ahead of Paris meet to give shape to PM Narendra Modis solar vision  Read more
  • Permanent counters for LED bulbs, fans at petrol pumps: EESL official  Read more
  • ONGC, Oil India better bets than downstream oil companies  Read more
  • Solar Energy Corporation of India plans to set up more solar plants  Read more
  • Fuel sales increase between 30 per cent and 40 per cent since demonetization  Read more