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ONGC Videsh may get two more oil blocks in the Orinoco oil basin in Venezuela.
One of the blocks is located in Junin fields, which is stated to have about 50 billion barrels of recoverable oil reserve.
The other block is Carabobo with estimated 42 billion barrels of recoverable oil reserves.
The breakthrough comes on the heels of OVL signing an agreement with Venezuela’s national oil company PDVSA on Tuesday to pick up 40% stake in the San Cristobal oilfield.
Venezuelan president Hugo Chavez told Economic Times that the two blocks would be given to India ONGC, subject to technical evaluation.
It is learnt from official sources that oil minister Murli Deora, during his meeting with Chavez on Wednesday, requested him to give two more oil blocks to India.
“The president has kindly accepted our proposal,” Mr Deora said after the meeting.
India has been investing in oilfields abroad for its energy security and has made the strategic move to get a foothold in Venezuela by signing the joint venture, he said.
These oil blocks would help to ensure energy security as the nation imports about 79% of its crude oil needs.
India is currently in the current marketing strategy of Venezuela, which wants to come out of the shadow of the US.
“For sometime now, we have started diversifying our oil market. In the past, the sole market was US. Today, apart from US, we have markets in Caribbean, Africa, Europe and in Asia. And even in China; 300,000 bpd oil is sent to China and the goal is one million bpd. Now, with India we are happy with the first step we did yesterday (the JV for San Cristobal), very important step. We have signed joint venture agreement. We have approved presence of India in an oilfield here,” the president said.
It is understood OVL would soon submit the proposals and the technical evaluation of proposals would be done in four-six months time.
The in-place reserve in each of two regions is said to be 213 billion barrels and OVL would get one block each from these fields.
Commenting on the move, OVL managing director RS Butola said: “We are already engaged in certifying reserves in the Junin area of the Orinoco.” OVL is investing $355.738 million in the region, including signature bonus of $173.1 million for the 40% stake in the San Cristobal block.