ONGC, IOC, OIL consortium wins oil block in Venezuela

These state-run Indian companies will develop the Carabobo-1 block in Venezuela's Orinoco Belt with Spain's Repsol and Malaysia's Petroliam Nasional

Oil and Natural Gas Corp (ONGC) and its partners Indian Oil Corp (IOC) and Oil India Ltd (OIL) have won a bid to develop a major crude oil block in Venezuela, ONGC’s first major overseas success since the Imperial Energy Plc acquisition in 2008, reports PTI.

The state-run Indian companies will develop the Carabobo-1 block in Venezuela's Orinoco Belt with Spain's Repsol YPF SA and Malaysia's Petroliam Nasional Bdh, ONGC said in a statement.

An official said the group will pay $1.05 billion to Venezuela as signing amount and will initially invest another $9 billion in developing the block that can produce 400,000 barrels of heavy oil per day (20 million tonnes per annum). Total spending on the block over 25 years would be $9 billion. Besides, the consortium would also extend some credit to Venezuela's state oil company Petroleos de Venezuela SA (PdVSA), which would hold 60% interest in the project.

Venezuela yesterday announced the winners of two of the three Carabobo blocks it had auctioned last month.

The Latin American nation gave out 40% stake to international firms, the largest oil investment in President Hugo Chavez's 11-year rule.

Chevron Corp will develop the Carabobo-3 block along with Mitsubishi Corp, Inpex Corp and Suelopetrol CA of Venezuela after paying a signing amount of $500 million.

A third oil block in the Carabobo area of the Orinoco will be assigned at a later date.
 

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