OVL, Indian Oil Corporation (IOC) and Oil India (OIL) propose to invest around $2.25 billion (approx Rs 10,350 crore) initially, in the development of the oil project they bagged in Venezuela.

The Carabobo-1 project of the Orinoco extra-heavy oil belt of Venezuela is expected to involve a total investment of $19 billion (approx Rs 87,400 crore) over 25 years. Of the $2.25 billion initial investment proposed, $1.13 billion (approx Rs 5,198 crore) will come from OVL while IOC and OIL are expected to chip in about $433-435 million (approx Rs 199-Rs 200 crore) each.

Spain's Repsol-YPF, OVL and Petronas will each hold 11 per cent stake in Carabobo-1, with 7 per cent being split between IOC and OIL. The balance 60 per cent stake will be with Petróleos de Venezuela.

The project is expected to give India 3.6 million tpa of crude oil out of the envisaged output of 4,00,000 bpd (20 million tpa).

Also See:

OVL in deal with Petronas, Raspol for Venezuela fields (23-Dec-09)