ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp, is targeting over 14 per cent jump in output to 14.37 million tonne (MT) in the current fiscal, with its fields in Russia contributing half of the total. Talking to reporters on the sidelines of an industry event, OVL Managing Director Narendra K Verma said OVL had in 2016-17 produced 12.57 MT crude oil and equivalent natural gas from its assets abroad.
OVL output was 8.92 MT oil and oil equivalent gas in the previous 2015-16 fiscal. “In the current year we are targeting 14.37 million tons oil equivalent production,” he said.
OVL Director (Finance) Vivekanand said half of the current year’s production would come from Russia’s Vankor oilfield in which the company last year acquired 26 per cent stake. OVL bought the stake in two tranches. First, it acquired 15 per cent in May 2016 for USD 1.268 billion, and then another 11 per cent in October 2016 for USD 930 million.
It received its 15 per cent share of oil from Vankor for the almost 11 months but 11 per cent share was only for a part of year as the deal. This fiscal, it will get full 26 per cent share. OVL’s share of oil from Vankor will be 7.3 MT. Vivekanand said the company has started getting dues from Venezuela, with almost USD 80 million being paid over the last 3-4 months.
Venezuela owed OVL around USD 530 million in unpaid dividends and has this year started to clear that in instalments. “We got about USD 80 million but also had to invest USD 40 million back. So net we have got USD 40 million,” he said.
OVL had in April 2008 acquired 40 per cent stake in San Cristobal oil project in Venezuela. Corporacion Venezolana del Petróleo (CVP), a unit of state-owned Petróleos de Venezuela SA (PDVSA), owns the remaining stake. With an investment of USD 408.35 million, OVL’s share of crude oil production from the 160.18 km acreage in the Orinoco Heavy Oil belt was 0.645 MT in 2014-15.
OVL received USD 56.224 million as dividend on profit made by CVP in 2008 but dividends from 2009 totalling to about USD 530 million remained unpaid due to cash flow difficulties being faced by PDVSA/CVP. OVL has 37 projects in 17 countries. Of these, 14 assets in 10 countries are producing and four in a similar number of countries are under development.