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Indian Oil Cos sign $20 Bln JV in Venezuela


A consortium of Indian oil PSUs has signed a joint venture agreement with the Corporación Venezolana del Petróleo S.A. (CVP) for the development and production from Carabobo-1 Project, in Orinoco Region of Venezuela. Shri Murli Deora, Minister of Petroleum and Natural Gas along with Shri S.Sundareshan, Secretary Petroleum; Chairman Indian Oil Corporation Limited; Chairman& managing Director, Oil India Limited; Managing Director, ONGC Videsh Limited and other senior officials from the Ministry of Petroleum and Natural Gas participated in the signing ceremony presided by the President of the Bolivarian Republic of Venezuela, Mr. Hugo Chavez Frias.
The new joint venture is PetroCarabobo SA. Along with OVL, IOC and OIL, the other two partners of the consortium i.e,Spanish Major Repsol and Malaysian Petronas also signed the joint venture agreement.
The consortium of ONGC Videsh Ltd (‘OVL’, 11.0%), Indian Oil Corporation Ltd (‘IOC’, 3.5%), Oil India Ltd (‘OIL’, 3.5%), Repsol YPF (‘Repsol’, 11.0%) and Petroliam Nasional Berhad (‘PETRONAS’, 11.0%), (collectively, the ‘Consortium’), was selected by the Government of the Bolivarian Republic of Venezuela on 10th February 2010 for awarding a 40% ownership interest in an ‘Empresa Mixta’ (or ‘Mixed Company’) which will develop the Carabobo 1 Norte and Carabobo 1 Centro blocks located in the Orinoco Heavy Oil Belt. The Corporación Venezolana del Petróleo (‘CVP’), a subsidiary of Petróleos de Venezuela S.A. (‘PDVSA’), Venezuela’s state oil company, will hold the remaining 60% equity interest.
The Mixed Company will build heavy oil production facilities, upgrading facilities and associated infrastructure. The upstream production facilities are expected to produce around 400,000 barrels per day of extra heavy oil of which about 
200,000 barrels per day will be upgraded into light crude oil in a facility to be located in the Soledad area, Anzoátegui State. The license term will be for 25 years with the potential for a further 15 year extension. The project costs are estimated at US$ 15-20 Billion dollars and is one of India’s major investments in the Latin American oil major.

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