ONGC consortium to invest around $2.25 billion in Venezuela project

State-run Oil and Natural Gas Corporation (ONGC) and its Indian partners, Indian Oil Corporation (IOC) and Oil India Ltd (OVL), have lined up investments of around $2.25 billion for development of an oil field in Venezuela. The ONGC consortium is seeking government approval for investing around $2.25 billion, initially, for developing the giant Venezuelan oil field.

ONGC, IOC and OIL will together invest around $2.25 billion, initially, in the Carabobo-1 project of the Orinoco extra-heavy oil belt of Venezuela. The project involves investment of $19 billion over 25 years.

The three have sought government nod for the $2.25 billion investment. Part of the of $472.5 million total investments will be funded from the revenues the companies will earn when the project with an envisaged output of 400,000 barrels a day goes on stream in three years.

The ONGC consortium is developing the Carabobo-1 block jointly with Spain's Repsol-YPF and Petronas of Malaysia and loan funding from Venezuela's state-run PdV.

Repsol-YPF, OVL and Petronas will each hold 11 per cent stake in Carabobo-1, with 7 per cent being split between IOC and OIL. Balance 60 per cent will be with PdV. The project will give India 3.6 million tonnes of crude oil annually.

The investment proposal would first go to the Empowered Committee of Secretaries (ESC) before going to the Cabinet for final approval.