PSU oil giants join big deal in Venezuela
New Delhi   20-May-2010

The three public sector oil companies IndianOil (IOC), Oil India Ltd (OIL), and ONGC Videsh Ltd (OVL) along with their consortium partners have inked a joint venture agreement for the $20 billion Carabobo-1 project in Venezuela. The other two partners in the consortium are Spanish major Repsol and Malaysian Petronas.

According to an official release, the consortium signed a joint venture agreement with the Corporaci6n Venezolana del Petroleo S A (CVP) for the development of and production from the Carabobo-1 Project in Orinoco region of Venezuela in a ceremony presided by the President of the Bolivarian Republic of Venezuela, Mr Hugo Chavez Frias, on Wednesday. The new joint venture is PetroCarabobo SA, the release said.

The consortium of OVL (11.0 per cent), IOC (3.5 per cent), OIL (3.5 percent), Repsol YPF (11.0 per1 cent) and Petronas (11.0 per cent), was selected by the Government of Venezuela on February 10 for awarding a 40 per cent ownership interest in an Empresa Mixta or Mixed Company which will develop the Carabobo 1 Norte and-Carabobo 1 Centro blocks located in the Orinoco Heavy Oil Belt.