Team effort: India's biggest companies, ONGC, Reliance and Indian Oil Corporation are joining forces for Venezuelan bid
Indian trio in talks for Venezuelan bid
India’s Oil & Natural Gas Corporation along with compatriots Reliance Industries and Indian Oil Corporation are teaming up for the first time to jointly bid for a huge oilfield in Venezuela that will see the trio invest some $16 billion to $18 billion.
ONGC Videsh, the overseas arm of the state explorer, is talking to Reliance, IOC and Oil India., to jointly bid for a 40% stake in a field in the Orinoco heavy crude belt.
“We are evaluating the three massive fields that are on offer and will decide on bidding shortly," India’s Economic Times reported an ONGC Videsh official saying.
Fields in the Carabobo region of the Orinoco belt would produce tar-like oil, which would need to be upgraded to higher-quality synthetic crude.
"The investment required is massive. The crude upgrade facility alone will cost $6 billion to $8 billion and so we are looking at partnership with other companies," the official said.
IOC may take a 2.5% to 5% stake while Oil India has been assigned a 2.5% cent stake. The remaining 32.5% to 35% will be split almost equally between ONGC Videsh and Reliance, reported the Economic Times.
Venezuelan state-run outfit PDVSA will retain the remaining 60% interest.
Each of the three fields on offer can produce 200,000 to 400,000 barrels of oil per day.