News: OVL to get 40% stake in Venezuelan oil block

(BL 17/01/2007) New Delhi - ONGC Videsh Ltd, the overseas arm of state-run Oil and Natural Gas Corporation, will get 40 per cent stake in an oil field in Venezuela.

"We have taken a decision to award the San Cristobal block to OVL," Petroleos de Venezuela (PDVSA) Vice President E&P, Lois F Vierma said here.

PDVSA is Venezuela's state-owned firm in charge of exploration, production, transport and sale of hydrocarbons. He, however, did not give the percentage of stake being offered to OVL.

Industry sources, however, said OVL would get 40 per cent stake, higher than the previously anticipated 30 per cent, in the oil field. Venezuelan national oil firm PDVSA will hold the remaining 60 per cent stake.

ONGC will partner PDVSA in exploring oil in the onshore field San Cristobal, which has a potential to produce 100,000 barrels per day.

Venezuela, which sells 60 per cent or 1.5 to 1.6 million barrels per day of crude to US, is South America's only member of Organisation of Petroleum Exporting Countries (OPEC).