Venezuelan President Hugo Chavez, who is visiting India, said on Saturday that Petroleos de Venezuela and Oil and Natural Gas Corporation (ONGC) Videsh, the overseas subsidiary of India's state-run exploration firm, had signed a memorandum of understanding to jointly explore for and produce oil in Venezuela.
The MOU paves the way ONGC and gas transmission firm GAIL India Ltd to bid for exploration blocks in Venezuela and Chavez said the San Cristobal oil field had already been chosen as specific field where drilling could start immediately. Negotiations also involved two offshore gas fields.
Indian oil minister Mani Shankar Aiyar said the San Cristobal field had the potential to produce 100,000 barrels of oil per day. Venezuela will keep 51% equity, while India will take a 49% stake and become operator of the field.
Aiyar said India would also offer Venezuela equity in Mangarlore Refinery and Petrochemicals Ltd (MRPL), the refining subsidiary of ONGC.
Chavez said he wanted Venezuela, the world’s fifth largest oil exporter, to be a long-term supplier of crude to India. Venezuala has also recently signed similar deals with China.
