News: ONGC eyes 49% stake in Venezuela block

(RTR 09/03/2007) New Delhi - Oil and Natural Gas Corp. (ONGC) is seeking a 49 percent stake in Venezuela's San Cristobal oil block, where it has been offered a 30 percent holding, company sources said on Friday.

"We are seeking (Indian) government intervention to raise our stake to 49 percent," said an ONGC official, who could not be named, referring to the heavy oil block in Venezuela's Orinoco belt.

Another ONGC official said the firm was looking for the maximum permissible stake under Venezuelan law.

"There is a case to increase our stake to 49 percent. Their law permits foreign firms to hold up to 49 percent stake. We have talked at the official level, but the issue is in the domain of Venezuela's petroleum ministry." In March 2005, Venezuela agreed to give a stake in San Cristobal to ONGC Videsh, the overseas investment arm of ONGC.

Venezuelan state oil company PDVSA has also invited ONGC to participate in the qualification and certification of reservoirs for the Junin block, also in Orinoco, said the first official.

All foreign companies operating huge crude projects in Venezuela's Orinoco have agreed to cede operational control to the state by May 1 under moves to nationalise the South American nation's hydrocarbon assets.

Oil and Natural Gas Corp. (ONGC) is seeking a 49 percent stake in Venezuela's San Cristobal oil block, where it has been offered a 30 percent holding, company sources said on Friday.