India's Reliance Industries Eyes Oil Project In Venezuela
NEW DELHI, Jan 14 (Reuters) - India's Reliance Industries is considering taking an 11 percent stake in one of Venezuela's biggest petroleum projects, the energy major said on Tuesday, strengthening ties between the Latin American nation and its top Indian customer.
Reliance, controlled by billionaire Mukesh Ambani, operates the world's biggest refining complex in western India and derives nearly 80 percent of its revenue from refining. It is hunting for cheaper, heavier crude oil to feed its refineries.
Venezuela has been Reliance's top crude oil supplier, and in 2012 the company signed a 15-year deal to buy up to 400,000 barrels per day (bpd) of heavy oil from its state-run oil company, PDVSA.
"We are looking to participate in the heavy oil upgrades project and a farm-in in the Carabobo-1 block, taking over the participating interest of Petronas," Swagat Bam, senior vice-president at Reliance said at the Petrotech conference.
Reliance is also examining entry into the Ayacucho-8 block in a joint venture with PDVSA, Bam said.
Malaysia's Petronas said in September it is exiting the Petrocarabobo project in Venezuela's Orinoco belt, after what sources said were disagreements with Venezuelan authorities and PDVSA.
The project plans to invest around $20 billion over 25 years and involves building a 200,000 barrel per day upgrader to convert heavy crude into light crude oil.
Venezuela's PDVSA holds 60 percent of the project. Other partners are Spain's Repsol, India's ONGC, Oil India and Indian Oil Corp.
After recent regulatory changes in Mexico, Reliance is looking at exploration opportunities there, but has so far not committed any investments in that country, Bam said. Reliance currently buys 60,000 bpd of oil from Mexico.
In December, Mexico's Congress voted to open up its oil and gas sector to private investment in the biggest overhaul of the industry since it was nationalized, as the country seeks to revive flagging output.
"Our working relationship with petroleum regulators and NOCs (national oil companies) in LatAm countries has always been exemplary and this has given us great sense of confidence," Bam said.
Reliance, India's largest private sector company by revenue, has seen a sharp fall in output at its KG D6 gas block off the country's east coast, since 2010, raising investor concerns over its exploration business.
Its overseas exploration business mainly comprises stakes in three shale gas joint ventures in the United States that it acquired in 2010.
(Reporting by Nidhi Verma; Writing by Prashant Mehra; Editing by Sunil Nair and Louise Heavens)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension