Nod for OVL’s Venezuela investment | business | Hindustan Times
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Nod for OVL’s Venezuela investment

The government on Friday gave Oil and Natural Gas Corp and its partners approval to invest $ 2.2 billion (Rs 10,900 crore) in a giant oilfield in Venezuela that will give energy deficient India 3.6 million tonnes of crude oil per annum.

business Updated: Mar 19, 2010 21:31 IST

The government on Friday gave Oil and Natural Gas Corp and its partners approval to invest $ 2.2 billion (Rs 10,900 crore) in a giant oilfield in Venezuela that will give energy deficient India 3.6 million tonnes of crude oil per annum.

ONGC Videsh Ltd (OVL), the overseas arm of the state explorer, will invest $1.3 billion between 2010 and 2015 as its share of spending in the 400,000 barrels per day ‘Carabobo-1’ project. Indian Oil and Oil India will invest $454 million each in the project.

The Cabinet Committee on Economic Affairs (CCEA) approved the investment by Indian firms who together hold 18 per cent stake in the Carabobo-1 project, Home Minister P. Chidambaram told reporters after the CCEA meeting here.

The Carabobo-1 project of the Orinoco extra-heavy oil belt of Venezuela would involve a total investment of close to $21 billion over 25 years.

The three oil companies have, for the time, sought the government’s approval for investing $2.18 billion and may be able to fund most of the future investment from the revenues they will start earning when the project goes on-stream in three years.