ONGC Videsh (OVL) led conglomerate is likely to sign contracts for developing an oilfield - Carabobo-1 in Venezuela.

OVL and its consortium partners Indian Oil Corporation (IOC) and Oil India (OIL) are planning to invest $2.181 billion (approx Rs 9,814.5 crore) in the 4,00,000 bpd project by 2015. Initially, OVL is likely to invest $1.333 billion (approx Rs 5,998.5 crore), while IOC and OIL will invest $454 million (approx Rs 2,043 crore) each. The companies 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.

The Carabobo-1 project is to be operated by Spain's Repsol-YPF and Petronas of Malaysia. Repsol-YPF, OVL and Petronas will each hold a 11 per cent stake in the 'mixed company' that will develop Carabobo-1, while seven per cent will be split between IOC and OIL. The remaining 60 per cent participating interest will be with Petroleos de Venezuela SA.

The Carabobo-1 project of the Orinoco extra-heavy oil belt of Venezuela will involve a total investment of close to $21 billion (approx Rs 94,500 crore) over 25 years. The project comprises developing the Carabobo-1 Central and Carabobo-1 North blocks with a total output of 4,00,000 bpd. Early output of at least 50,000 bpd is slated to commence in 2012-13, before rising to its peak in 2016.

Once on stream, the project is likely to give India 3.6 million tpa of crude oil.

Also See:

OVL makes two oil discoveries in Syria (6-March-10)

Addendum:

OVL and its consortium partners Indian Oil Corporation (IOC) and Oil India (OIL) on 12 May 2010 signed a JV agreement for the Carabobo-1 project in Venezuela. The other two partners in the consortium are Spanish major Repsol and Malaysian Petronas.