The Hindu Business Line : OVL embarks on $450-m tie-up with Venezuelan co

Looking at opportunities: Mr Murli Deora, Minister for Petroleum & Natural Gas; flanked by Mr M.S. Srinivasan (left), Petroleum Secretary; and Mr J. P. Nayaka, Chairman, CII National Committee on Capital Goods & Engineering, and Member of the Board & President (Operations), Larsen & Toubro; at the CII’s National Seminar on ‘Opportunities in the Oil & Gas Industry’ in Mumbai on Saturday.

Our Bureau

Mumbai, April 5 ONGC Videsh Ltd will sign an agreement with Petróleos de Venezuela S.A., the State oil company of Venezuela, for a $450-million investment in an oilfield next week.

The Union Petroleum Minister, Mr Murli Deora, along with oil ministry officials will leave for Venezuela on Sunday for the signing ceremony.

Mr Deora told reporters at an industry function in Mumbai on Saturday that OVL had picked up a 40 per cent stake in the oilfield.

The field in San Cristobal has an oil reserve of around 250 million tonnes, he said.

‘Good opportunity’

The Petroleum Secretary, Mr M.S. Srinivasan, said San Cristobal is one of the most prospective fields in Venezuela.

It is a good opportunity to enter the Venezuelan exploration and production sector.

“We expect to start commercial production from that field in three years’ time,” Mr Srinivasan said.

The Union Cabinet had on March 3 given approval for the investment based on the recommendations made by the Empowered Committee of Secretaries.

It has authorised OVL to form a joint venture company with the Venezuelan counterpart for the development of the field.

Pakistan has invited Indian oil ministry officials to negotiate the proposed $7-billion tri-nation gas pipeline.

Mr Deora said he has received a letter from the Pakistan Oil Minister inviting him for negotiations.

There would be two rounds of negotiations, which will focus on the transportation cess on gas, he said.

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