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ONGC Videsh Ltd.

ONGC Videsh Seeks Legal Opinion After US Sanctions on Russian Oilfield

Strategic Insights

— 1 min read

As the US imposes sanctions on a Russian oilfield, ONGC Videsh Ltd, a consortium of Indian companies, has taken precautions to ensure compliance. The US Department of the Treasury's Office of Foreign Assets Control (OFAC) has designated several Russia-based subsidiaries of Rosneft and Lukoil, including CJSC Vankorneft, in which OVL holds a 26% stake. While the OFAC sanctions appear to exempt Indian companies, OVL is seeking legal opinions to mitigate any potential risks. The Indian firms do not hold a 50% stake in Vankorneft, and instead receive dividends from the joint venture's earnings.

Key Takeaways:

  • ONGC Videsh Ltd has sought legal opinion after the US imposed sanctions on a Russian oilfield in which a consortium of Indian companies holds a 49.9% stake.
  • The US Department of the Treasury's Office of Foreign Assets Control (OFAC) has designated several Russia-based subsidiaries of Rosneft and Lukoil, including CJSC Vankorneft, in which OVL holds a 26% stake.
  • Indian companies in the consortium, including Oil India, Indian Oil Corporation, and Bharat PetroResources, hold a combined 23.9% stake in Vankorneft.
  • The remaining 50.1% of Vankorneft is held by Rosneft.
  • OFAC sanctions indicate that the restrictions do not apply to Indian companies, as they do not hold a 50% stake in Vankorneft.
  • Indian firms do not receive any equity oil from the field but are entitled to dividends from the joint venture's earnings.
  • The Vankor field is located in the north-eastern part of the West Siberian Basin, spread over 416.5 square kilometers.

Statistics:

  • 449.9% stake in the Vankorneft oilfield held collectively by Indian companies and ONGC Videsh Ltd.
  • 26% stake in Vankorneft held by ONGC Videsh Ltd.
  • 23.9% stake in Vankorneft held by Indian companies in the consortium (Oil India, Indian Oil Corporation, and Bharat PetroResources).
  • 50.1% stake in Vankorneft held by Rosneft.
  • 416.5 square kilometers the size of the Vankor field located in the West Siberian Basin.

Sources:

  • PTI reports from the United States Department of the Treasury's Office of Foreign Assets Control (OFAC).
  • Indian National Press (Bombay) Pvt. Ltd. Copyright 2025 distributed by Contify.com.

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