Indian Oil Corporation, Oil India and ONGC Videsh plan to develop a $20 billion oil project in Venezuela that will provide India 3.6 million tonne crude annually. A government release said the deal was signed on Wednesday.
ONGC Videsh and partners signed the deal with Venezuela?s state-owned oil firm Petroleos de Venezuela SA (PdV) for producing hydrocarbons from the Orinoco region of Venezuela . The project is called Carabobo.
The joint venture agreement was signed in Venezuela in the presence of Venezuela president Hugo Chavez Frias and oil minister Murli Deora, the statement said.
Spain’s Repsol-YPF SA, Malayasia?s Petroliam Nasional Bhd (Petronas) and OVL hold 11% stake each in the consortium that will produce 400,000 barrels of oil per day.
IOC and Oil India will each have 3.5% interest in the joint venture firm to develop the blocks located in the Orino Heavy Oil Belt.
The remaining 60% stake will be held by the Corporacion Venezolana del Petroleo (CVP), a unit of PdV, Venezuela ‘s state oil company. About half of the production from the joint venture, called PetroCarabobo SA, will be upgraded into light crude oil for export. The project costs are estimated at $15-20 billion and is one of India ‘s major investments in Latin America , the statement said.