New Delhi : In the largest ever investment by an Indian company in Latin America, ONGC Videsh will pump in more than $50 million for exploration and production of crude oil in Venezuela. This is the first time that Venezuela has offered oil field concessions to a foreign company outside the international tendering procedure, according to a communication received here from the Indian embassy in Caracus on Wednesday.The memorandum of understanding (MoU) to this effect was signed on Tuesday between ONGC Videsh and PDVSA, the Venezuela state oil company. As per the MoU, the Venezuela side has offered six blocks to ONGC for the exploration and production of oil.
The agreement was signed by ONGC managing director Atul Chandra, and the PDVSA chairman in the presence of Indian ambassador R Viswanathan.Venezuela is the third largest exporter of oil in the world with over 3 million barrels per day (bpd). PDVSA is the third largest company in the world with a turnover of over $50 billion.
The petroleum sector has emerged as the focus area of cooperation between India and Venezuela. A joint working group has been meeting since 1999 and has identified a number of areas for collaboration between the two countries.After signing the MoU, the ONGC Videsh delegation had a meeting with the president of Venezuela Mr Hugo Chavez. The president described the MoU as an indication of Venezuela's desire to strengthen economic and commercial relations with India.
India has started buying the Venezuelan crude oil from this year. Oil India Limited is seeking technology from PDVSA for development of the heavy oil fields in Rajasthan.
The Indian embassy at Caracas is planning to organise an exclusive Indian exhibition of engineering products of India in collaboration with the Engineering Export Promotion Council of India in June next year, the communication added.
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