The Cabinet Committee on Economic Affairs on Wednesday gave its nod to the acquisition of 11 per cent stake in Russia’s Vankor oil fields by ONGC Videsh Ltd(OVL) from Rosneft Oil Company for $930 million, which will take its overall stake in the project to 26 per cent.

The overseas arm of state-owned Oil and Natural Gas Corp (ONGC) had last year bought 15 per cent stake in the field for $1.268 billion. The acquisition of stake in Vankorneft will provide 3.2 million metric ton of oil equivalent (MMTOE) to OVL by 2017.

“It will also provide an opportunity to Indian public sector oil and gas companies to acquire new technologies from Rosneft. The acquisition is in line the ONGC’s stated objective of adding high quality international assets to India’s Exploration and Production (E&P) portfolio and thereby augmenting India’s energy security,” the government said in a statement on Wednesday.
Recently, an Indian consortium comprising of Oil India Ltd (OIL), Indian Oil Corporation Ltd (IOCL) and Bharat Petro Resources Ltd (BPRL) acquired 23.9 per cent stake in Vankorneft at a cost of $ 2.02 billion which will give them 6.56 MMTOE.

Vankor is Rosneft’s second largest field in terms of productions and accounts to 4 per cent of Russia’s production. The field produces around 4,21,000 barrels per day of crude oil on an average and OVL’s overall share of daily oil production from Vankor will be about 1,10,000 bpd.

Meanwhile, the Cabinet also approved HLL Lifecare Ltd, a miniratna PSU under ministry of health and family welfare to sub- lease 330.10 acres of land at Chengalpattu, located in the outskirts of Chennai, to setup a medical devices manufacturing park (Medipark) through a special purpose Vehicle.

The shareholding of HLL in the project would be above 50 per cent. The other major decisions include approval to introduce official amendments to the HIV and AIDS (Prevention and Control) Bill, 2014, the nod to signing of a memorandum of understanding between India and European Union in the field of water resources.,