GUWAHATI, May 14 � Murli Deora, Minister of Petroleum and Natural Gas, along with S Sundareshan, Secretary, Petroleum; NM Borah, chairman and managing director, Oil India Limited; chairman Indian Oil Corporation Limited; managing director, ONGC Videsh Limited and other senior officials from the Ministry of Petroleum and Natural Gas participated in a ceremony � presided by President of Venezuela Hugo Chavez Frias � for signing a joint venture agreement with the Corporation Venezolana del Petroleo SA (CVP) for the development and production from Carabobo-1 Project, in Orinoco region of Venezuela, stated a press release.
The signing took place in Caracas, capital city of Venezuela, late yesterday night (India time). The new joint venture is Petro Carabobo SA. Along with OIL, OVL and IOC, two other partners of the consortium � Spanish Major Repsol and Malaysian Petronas � also signed the joint venture agreement.
The consortium of ONGC Videsh Limited (OVL 11.0 per cent), Indian Oil Corporation Limited (IOC 3.5 per cent), Oil India Limited (OIL 3.5 per cent), Repsol YPF (Repsol 11.0 per cent) and Petrolaim Nasional Berhad (Petronas 11.0 per cent), collectively, the consortium, was selected by the Government of the Republic 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. The Corporation Venezolana del Petroleo (CVP), a subsidiary of Petroleos de Venezuela SA (PDVSA), Venezuela�s state oil company, will hold the remaining 60 per cent equity interest.
The mixed company will build heavy oil production facilities, upgrading facilities and associated infrastructure. The upstream production facilities are expected to produce around 400,000 barrels per day of extra heavy oil of which approximately 200,000 barrels per day will be upgraded into light crude oil in a facility to be located in the Soledad area, Anzoategui State. The license term will be for 25 years with the potential for a further 15 year extension. The project costs are estimated at US$ 15 � 20 billion dollars and is one of India�s major investments in the Latin American oil major.
