Oil India buys 50% stake in Russian oil block for $85 million.

Oil India Ltd., the nation's second-biggest state-run explorer, has bought a 50% stake in an oil block in Russia for $85 million.

OIL last month signed an agreement with Ireland- registered but Russia-focused firm PetroNeft Resources plc to take a 50% non-operating interest in License 61 in Tomsk Oblast in Russia, official sources said.

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.

Tungolsky Licence 61 is located on the east side of the Ob River in the least explored oil bearing region of the Tomsk Oblast. The 4,991 square kilometer Licence contains 7 oil fields and over 25 identified prospects and leads.

BS