The CCEA approved awarding of 33 oil and gas blocks for exploration under NELP-VIII. The authority has cancelled the award of three NELP blocks--two blocks VN-ONN-2005/1 and VN-ONN-2005/2 to GeoGlobal Resources (Barbados) Inc. (under NELP VIII), and one block CB-ONN-2005/1 to Interlink Petroleum, Moonstone Energy and EnSearch Petroleum consortium under NELP-VII.

The CCEA has also given its nod to OVL and its partners, Oil India (OIL) and Indian Oil Corporation (IOC) to invest $2.181 billion (approx Rs 9,814.5 crore) in Carabobo-1 block in Venezuela over a period of six years between 2010 and 2015.

The Carabobo-1 project, comprising Carabobo-1 Central and Carabobo-1 North blocks, will develop extra-heavy crude production capacity of up to 4,00,000 bpd. Early output of at least 50,000 bpd is slated to start in 2012-13, rising to peak in 2016.

The investment is expected to provide additional reserve accretion of hydrocarbons and facilitate production and marketing of crude oil from the Carabobo Project. India based consortium partners (OVL-IOC-OIL) will have equity access to about 70,000 bpd of oil and marketing access to about 1,80,000 bpd of oil for the next 25 plus possibly 15 years.

In February 2010, the three companies had won the rights to develop the project along with Spain's Repsol-YPF and Petronas of Malaysia. Along with their partners, they had won 40 per cent ownership in Carabobo-1 block located in the Orinoco heavy oil belt in eastern Venezuela. The remaining 60 per cent interest in the block is to be with Petroleos de Venezuela SA.

Also See:

OVL, IOC, OIL plan investment in Venezuela oil field (18-Feb-10)