The Hindu Business Line : OVL likely to form joint venture with Venezuelan co

ONGC Videsh Ltd (OVL), the overseas investment arm of ONGC engaged in exploration and production (E&P) of oil and gas outside India, is hopeful of inking a joint venture agreement with PDVSA, the national oil company of Venezuela, soon.

"Discussions are going on and we are working on a joint venture with PDVSA. Once the mandatory approvals are obtained the pact will be inked," a senior company official said.

Since PDVSA is a national oil company, Governmental approval is required before signing the joint venture, the official told Business Line.

Subsequently, a joint working group will be formed to examine possible business opportunities.

An OVL team is already in Venezuela, working out the nitty-gritty of the joint venture.

A steering committee meeting of the two entities is expected to take place in India next week.

There are also indications that OVL may join hands with other international oil and gas companies to tap exploration opportunities in Venezuela.

OVL has been offered 30 per cent participating interest in San Cristobal oil block in Venezuela. The oil field is expected to produce 100,000 barrels of oil per day.

Apart from E&P activities, a work programme on reserve quantification and a certification project have been initiated by the OVL team.

ONGC is one of the few MNCs invited by the Venezuelan Government to participate in the biggest-ever reserve quantification and certification project in the Orinoco heavy oil belt, along with other companies.

A hydrocarbon agreement between India and Venezuela was signed in March 2005.

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