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ONGC to invest $500 million in Venezuelan JV
Last updated on Feb 24, 2016, 12:45 pm
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OVL (ONGC Videsh Limited), the overseas wing of state-run Oil and Natural Gas Corporation, is likely to arrive at an agreement with Venezuela's Petróleos de Venezuela, SA (PDVSA) to invest around $500 million in their San Cristobal Joint Venture.
The investment would be used to increase production at San Cristobal oilfield.
OVL and CVP share the San Cristobal oil field in a 40:60 ratio.
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About
ONGC: A profile
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Oil and Natural Gas Corporation (ONGC) is a public sector undertaking of the Government of India which deals with oil and gas.
Headquartered in Dehradun, Uttarakhand, the company was established in 1956.
ONGC, which had discovered 6 of the 7 producing basins of India, accounts for 70% of India's oil and 50% of India's gas production.
It produces 1.27million barrels of oil equivalent daily.
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Personal
ONGC Videsh Limited
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ONGC Videsh Limited is a subsidiary of ONGC which is responsible for prospecting oil and gas outside India to meet India's energy needs. OVL has stakes in 33 oil and gas projects in 16 countries.
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PDVSA
PDVSA: A profile
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Venezuela is a South American country which has the largest oil reserves in the world.
PDVSA (Petróleos de Venezuela, S.A.) is a Venezuelan government-owned oil and natural gas company involved in exploration, production, refining and exporting of oil.
PDVSA's subsidiary- Corporación Venezolana de Petróleo (CVP)- owns 60% stake in the San Cristobal oil fields joint venture with ONGC Videsh Limited.
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Information
The ONGC-PDVSA partnership
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ONGC Videsh Limited's partnership with PDVSA began when OVL had invested $190 million in 2008 in the San Cristobal joint venture project for a 40% stake.
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24 Feb 2016
ONGC to invest $500 million in Venezuelan JV
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OVL (ONGC Videsh Limited), the overseas wing of state-run Oil and Natural Gas Corporation, is likely to arrive at an agreement with Venezuela's Petróleos de Venezuela, SA (PDVSA) to invest around $500 million in their San Cristobal Joint Venture.
The investment would be used to increase production at San Cristobal oilfield.
OVL and CVP share the San Cristobal oil field in a 40:60 ratio.
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24 Feb 2016
Investment to revive production
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Investing in the San Cristobal oil field will help increase oil production in the field which has fallen from 38,000 barrels a day to 28,000 barrels a day.
It will also help revive the oil-dominated Venezuelan economy which is reeling under an economic crisis due to falling crude prices.
For India, it will help reduce crude oil dependence on conflict-ridden gulf countries.
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Information
India emerging as a major market for Venezuelan crude
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According to Bloomberg, India has already surpassed the US and China to become the largest destination for Venezuelan crude oil exports.