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The Vankorneft field. Image courtesy of Rosneft.

Russia’s Rosneft agreed on Friday to sell its 15 percent stake in Vankorneft, a Rosneft subsidiary established in 2004 to develop the Vankor oil and gas condensate field.

Rosneft did not disclose the value of the stake but a source close to the deal told Bloomberg the stake is worth about $1.27 billion.

The transaction will be complete once necessary approvals are obtained, Rosneft said.

As part of the deal, ONGC Videsh will have two places in the board of directors of Vankorneft0

Rosneft will create an operator company that it said “will allow more efficient management of both Vankor field and other company’s licenses in this region.”

The field is located in the Turukhansky district of Krasnoyarsk Territory, 88 miles away from the city of Igarka in Eastern Siberia.

Initial recoverable reserves of the Vankor field are estimated at 476 million tons of oil and condensate and 173 billion cubic meters of gas.

The field covers about 172 square miles.

In 2014, Vankor produced 22 million tons of oil with daily output reaching over 60,000 tons, up by more than 3 percent from 2013.

Oil transportation is carried out through the 345 mile long main oil pipeline Vankor-Purpe.

The oil produced at the field is one of the main sources for packing the Eastern Siberia – Pacific Ocean pipeline.

Rosneft is in talks with other companies, including China National Petroleum Corporation, to sell additional stakes in the field, Bloomberg added.

“Collaboration in such a large-scale project will allow establishing a brand new level of strategic cooperation between Rosneft and ONGC Videsh. This will accelerate the development of our partnership, in other large-scale oil and gas upstream projects in the region. Such a short time between reaching the agreements and signing the document testifies to the high level of credibility between us and the Indian partners which guarantees efficient joint work,” Rosneft chief Igor Sechin said.