ONGC earmarks $450m for Venezuela field

India's ONGC plans to invest $450 million over three years in exploration and production at the San Cristobal oilfield in Venezuela, a senior government official said.

A team of government and company officials was due to leave for Venezuela over the weekend to sign the agreement, MS Srinivasan, Secretary of the Ministry of Petroleum and Natural Gas said.

"We are going to spend about $450 million in exploration to start with over the next three years," Srinivasan told reporters on the sidelines of a conference, adding the oilfield had reserves of more than 1.5 billion barrels of crude and gas.

Last month, the Indian government said ONGC will take a 40% stake in the oilfield located in the Orinoco oil belt in a joint venture with Venezuelan national company, PDVSA, which will hold the balance 60% through its subsidiary.

India's state-run explorer, ONGC, will hold the stake through its overseas investment arm ONGC Videsh. The overseas arm is present in 29 oil and gas projects spread over 15 countries.

Indian government officials would also be attending a meeting with officials in Pakistan and Iran later this month to resolve issues raised by Pakistan on the proposed $7 billion tri-nation “Peace” gas pipeline, Indian Oil Minister Murli Deora said, Reuters reported.