To buy 11 per cent stake in an oil project in Venezuela, ONGC Videsh, the overseas arm of State-owned Oil & Natural Gas Corp (ONGC), and its partners OIL and IOC are planning. Petroliam Nasional Bhd, Malaysia's State-run oil company, has decided to withdraw from the Carabobo-I project following dispute over terms with Venezuela's state explorer Petroleos de Venezuela SA (PdVSA).
In the project, OVL has 11 per cent stake, while Oil India (OIL) and Indian Oil Corp (IOC) hold 3.5 per cent each. Spain's Repsol SA holds 11 per cent stake in the project while the remaining 60 per cent is with PdVSA. All the partners in the project, including PdVSA, have right of first refusal or pre-emption rights to the Petronas stake.
In the Orinoco heavy oil belt's Carabobo-1 project limited production began in March this year and is planned to produce 4,80,000 barrels of oil a day at peak. The field requires $20 billion to develop and produce oil.