By Dipanjan Roy Chaudhury, KUNA
New Delhi : Indias Petroleum and Natural Gas Minister Murli Deora will be on a two-day (Mar 7-8) visit to the oil-rich Latin American nation of Venezuela to expand energy ties.
During Deoras visit a joint venture agreement between the national oil company of Venezuela, PDVSA and Indias state-run energy major Oil and Natural Gas Corporation (ONGC) is scheduled to be signed on March 8 at Caracas, an official in the Oil Ministry told KUNA here Thursday.
“The proposed agreement comes in the wake of a hydrocarbon cooperation agreement signed between India and Venezuela in 2005 in Delhi in the presence of Prime Minister Dr. Manmohan Singh during the visit of the President of Venezuela to India. The Ministry of Petroleum and Natural Gas has been making efforts to promote collaboration between the national oil companies of India and other countries including Venezuela to obtain participation in exploration production assets abroad,” the official added.
Deora is visiting Venezuela on an invitation from its Energy Minister Rafael Ramirez Carreno.
Deora is being accompanied by M S Srinivasan, Secretary in the Ministry of Petroleum Natural Gas, R S Sharma chief of ONGC and other high level officials. The Indian government last Monday approved a proposal to authorise ONGC Videsh Limited (OVL) — the overseas wing of ONGC — for formation of a Joint Venture Company with CVP/Petroleos De Venezuela S.A.(PDVSA), Venezuela for development of San Cristobal field located in Orinoco Oil belt.
The project will provide OVL an opportunity to obtain significant equity ownership (40 per cent) in one of the largest oil producing countries in partnership with the host National Oil Company of Venezuela. It will be the first OVL property in oil rich Venezuela and is expected to open up other business opportunities, especially in the Orinoco Heavy Oil belt where development opportunities are coming up.