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Cabinet nod for OVL projects in Qatar, Venezuela

NEW DELHI: Seeking to expand the horizon of energy security for the nation and looking for oil and gas assets abroad, the Union Cabinet has given the green signal to Oil and Natural Gas Corporation Videsh Limited (OVL) to make major investments to the tune of $102.21 million in exploration and production projects in Qatar and Venezuela.

Interestingly, it will be the first major investment for OVL in the oil rich Venezuela in the form of a joint venture for the San Cristobel project. The approval comes close on the heels of the Petroleum and Natural Gas Minister Murli Deora’s two-day visit to Venezuela from March 7 that was cancelled at the last moment.

Mr. Deora was to be accompanied by the Petroleum Secretary, M. S. Srinivasan, along with senior officials of the oil marketing companies. During his visit, a joint venture agreement between the national oil company of Venezuela, PDVSA, and ONGC was scheduled to be signed.

The Cabinet had earlier this week gave a go-ahead to a proposal to authorise OVL for forming a joint venture company with CVP/Petroleos De Venezuela S.A. (PDVSA), Venezuela, for the development of the San Cristobel field, located in Orinoco oil belt, directly or through OVL’s existing and new wholly-owned subsidiary.

The project would provide OVL an opportunity to obtain significant equity ownership (40 per cent) in one of the largest oil producing countries in partnership with the host National Oil Company of Venezuela.

It will be the first OVL property in oil rich Venezuela and is expected to open up other business opportunities, especially in the Orinoco heavy oil belt where development opportunities are coming up.

The projects will provide hydrocarbon reserve accretion to OVL through the implementation of exploration work programme.

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