<p>Oil India Ltd, the nation’s second largest explorer, on Friday said it has completed acquisition of 50 per cent stake in an oil block in Russia for $85 million. OIL bought the stake from Ireland-registered, Russia- focused firm PetroNeft Resources plc in License 61 in Tomsk Oblast in Russia.<br /><br /></p>.<p>The deal includes a three-stage payout including $35 million in cash up-front, $45 million in exploration and development spending and a performance bonus of up to $5 million. “The total commitment from OIL will be $85 million including $45 million for development capex. The effective date of the acquisition is January 1, 2014,” the company said in a statement here.<br /><br />The acquisition marks OIL’s entry into Russia and is a significant addition to the company's overseas E&P portfolio. Last month, it had signed an MoU with Russia’s Gazprom International BV for joint pursuit of exploration opportunities across the globe as well as collaborate on liquefied natural gas (LNG).</p>
<p>Oil India Ltd, the nation’s second largest explorer, on Friday said it has completed acquisition of 50 per cent stake in an oil block in Russia for $85 million. OIL bought the stake from Ireland-registered, Russia- focused firm PetroNeft Resources plc in License 61 in Tomsk Oblast in Russia.<br /><br /></p>.<p>The deal includes a three-stage payout including $35 million in cash up-front, $45 million in exploration and development spending and a performance bonus of up to $5 million. “The total commitment from OIL will be $85 million including $45 million for development capex. The effective date of the acquisition is January 1, 2014,” the company said in a statement here.<br /><br />The acquisition marks OIL’s entry into Russia and is a significant addition to the company's overseas E&P portfolio. Last month, it had signed an MoU with Russia’s Gazprom International BV for joint pursuit of exploration opportunities across the globe as well as collaborate on liquefied natural gas (LNG).</p>