The Oil and Natural Gas Corporation (ONGC) will fully fund its $1.27 billion stake purchase in Rosneft’s Vankor field in Russia through overseas borrowing. The Russian government recently approved ONGC’s agreement to buy a 15 per cent stake in the Vankor field, the second largest Russian field in terms of output. ONGC plans to access the overseas debt market to pay for the stake. The company also plans to buy another 11 per cent stake in the Vankor field for which the price is yet to be finalised. ONGC has a capital spending plan of Rs 293 billion for 2016-17. In addition, it plans to spend about Rs 340 billion over the next four years to develop its fields in the Krishna-Godavari basin off the eastern coast of India.
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