ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), is seeking $537 million worth of crude oil in lieu of cash due for its share of sales from a Venezuelan oilfield. OVL owns 40 per cent of the San Cristobal field and had invested about $190 million in the project in 2008.
State-run Petroleos de Venezuela SA, or PDVSA, holds the remaining stake.
“We have not been paid for our share of oil from the field for last few years,” a company official said.
The San Cristobal project covers an area of 160 sq km in the Zuata subdivision of the Orinoco Heavy Oil belt in Venezuela. The field currently produces about 28,000 barrels a day, down from a peak of 38,000 bpd. The official said OVL had received its dividend from sale of crude oil produced from the field totaling $56.2 million for 2008.
But dividends for 2009 to 2013 totalling $537.d631 million remained unpaid due to cash flow difficulties being faced by PDVSA.
During 2015-16, OVL’s share of crude oil production was 0.57 MT as compared to 0.65 MT during the previous financial year. Its share of investment in the project was Rs 2,600 crore ($486.69 million) till March 31, 2016.