New Delhi: Oil and Natural Gas Corp (ONGC), Reliance Industries (RIL) and Indian Oil Corp (IOC), the nation’s biggest companies, are stitching together an alliance to bid for developing a vast oilfield in Venezuela at a cost of $16-18 billion.
ONGC Videsh Ltd, the overseas arm of the state explorer, is talking to Reliance, IOC and Oil India to jointly bid for 40% stake in fields in the vast Orinoco heavy crude oil belt.
“We are evaluating the three massive fields that are on offer and will decide on bidding shortly,” a top OVL official said.
Venezuela is offering 40% stake in massive projects in the Carabobo region of the Orinoco belt that would produce tar-like oil that would need to be upgraded into higher-quality synthetic crude. Its state oil firm Petroleos de Venezuela SA (PdVSA) will retain the remaining 60%.
“The investment required is massive. The crude upgrade facility alone will cost $6-8 billion and so we are looking at partnership with other companies,” he said.
IOC may take 2.5 to 5% stake while OIL has been assigned 2.5% stake. The remaining 32.5-35% will be split almost equally among OVL and Reliance.
Each of the three fields on offer can produce 200,000 to 400,000 barrels per day of oil (10-20 million tons a year).