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Scindia: Oil drill
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New Delhi, July 11: ONGC Videsh — the overseas arm of Oil and Natural Gas Corporation — and its partners plan to invest around $3 billion in Venezuela’s oil sector.
A consortium of state-run firms, led by ONGC Videsh, plans to invest an additional $2.2 billion in the Carabobo-1 heavy oil project, minister of state for commerce Jyotiraditya Scindia, currently on a visit to the South American nation, informed Venezuelan leaders.
ONGC already holds an 11 per cent stake in Carabobo-1, while Indian Oil Corporation and Oil India have 3.5 per cent each.
The project is expected to produce about 400,000 barrels per day of heavy oil, ONGC Videsh officials said without giving a timeline. Heavy oil is thick and sticky and does not flow easily.
Separately, ONGC Videsh plans to invest $500 million in the San Cristobal oil field, where it owns a 40 per cent stake, the government statement quoting Scindia said. The company has already invested $350 million in the project.
The PSU oil firms will also seek opportunities in other exploration and production projects as well as in the refining and marketing sectors in Venezuela.
Venezuela plans to invest around $15 billion a year in the vast Orinoco oil reserves, where both the projects are located.
Separately, the government said GAIL (India) Ltd was exploring marketing potential in Venezuela, while BPCL was keen on exporting and marketing base oil. Engineers India Ltd plans to provide its design and engineering services in the hydrocarbon sector.
At present, hydrocarbon reserves in Venezuela stand at 296.5 billion barrels, exceeding those of Saudi Arabia by 16 per cent, according to the BP “Statistical Review of World Energy 2012”.
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