The Cabinet Committee on Economic Affairs (CCEA) on Friday cleared Oil & Natural Gas Corp’s (ONGC) $2.2 billion investment in a Venezuelan oil block.
ONGC’s investment, along with that of other Indian partners Indian Oil Corporation and Oil India will give the energy deficient country access to 5.5 million tonnes a year of crude oil at peak level of production.
A group of secretaries had earlier approved ONGC’s proposal to acquire 40% stake in the Carabobo-1 block through a consortium (including both Indian and overseas partners).
The company’s foreign arm OVL will pick up an 11% stake in the Venezuelan field, while IOC and OIL will have 3.5% interest each, home minister P Chidambaram told reporters after the CCEA meeting.
Other members of the consortium are Repsol YPF of Spain and Petroleum National Bdh of Malaysia. Both will hold 11% stake each in the block. Balance 60% interest will remain with Venezuela’s state oil company Petroleos de Venezuela SA.
The consortium led by Indian state-owned oil companies had won a global bid to pick up 40% stake in the Carabobo-1 oil block last month. The block is expected to start production by 2013 and could achieve a peak produce of 400,000 barrels crude oil per day (20 million tonnes per annum) by 2016.
Source: http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/ONGCs-2-bn-Venezuelan-investment-plan-gets-nod/articleshow/5703908.cms
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