Govt approves ONGC to develop oil fields in Venezuela

New Delhi, Mar 4 (UNI) The Union Cabinet has approved to authorise ONGC's overseas arm OVL for the formation of a Joint Venture Company with CVP/Petroleos De Venezuela S.A.(PDVSA), Venezuela for development of San Cristobal field located in Orinoco Oil belt in the Latin American country.

The Cabinet also approved to authorize OVL to invest upto 102.21 million dollars in Najwat Najem Appraisal, Development and Production Sharing Agreement (NNADPSA) Qatar Project directly through its own resources.

It also authorised ONGC to provide funding and guarantee support to OVL, if required in both the projects above without seeking budgetary support from the Government of India.

The project provides OVL the opportunity to obtain significant equity ownership (40 per cent) in one of the largest Oil producing countries in partnership with the host National Oil Company in a Joint Venture. It will be first OVL property in oil rich Venezuela and may open up other business opportunities, especially in the Orinoco Heavy Oil belt where development opportunities are coming up.

The projects will provide Hydro-carbon reserve accretion to OVL through implementation of exploration work programme.

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