India Gives Thumbs Up for $2B Carabobo Oil Investment
NEW DELHI (Dow Jones), Mar. 19, 2010
The Indian government Friday approved an investment of $2.18 billion during 2010-2015 by three state-run oil companies in Venezuela's Carabobo 1 oil block.
On Feb. 11, Oil & Natural Gas unit ONGC Videsh Ltd., Indian Oil Corp. and Oil India, in consortium with Spain's Repsol YPF SA and Malaysia's Petroliam Nasional Bhd., were awarded development rights for the Carabobo 1 block.
The three Indian companies hold an 18% stake in the project, with OVL holding 11% while IOC and Oil India holding 3.5% each. Spain's Repsol and Malaysia's Petronas hold an 11% stake each in the project. Venezuela's state-run oil firm Petroleos de Venezuela SA, or PDVSA, holds the remaining stake.
The consortium will enter into an arrangement with PDVSA on April 22. The consortium has paid a $1.05 billion signing bonus and will pay another $1.05 billion to PDVSA for financing.
While OVL is likely to invest $1.33 billion, IOC and Oil India are expected to invest $425 million each. The cabinet panel also approved their borrowing plan but without government guarantees, Chidambaram said.
Copyright (c) 2010 Dow Jones & Company, Inc.
- Exxon Mobil Bets on Brazil, Buys 10 Oil Blocks in Auction (Sep 28)
- Repsol Says Drilling Suspended On Vietnam Oil Block Disputed By China (Aug 02)
- China Urges Halt To Oil Drilling In Disputed South China Sea (Jul 25)
Company: Indian Oil Corporation more info
- Indian Refiners Turn To Use Dirty Fuel To Produce Power, Gas (Dec 05)
- Indian Oil Aims For LNG Import Capacity Of 13.5 Million Tonnes In 5 Years (Oct 27)
- Sources: India's IOC Buys New US Crude Grades For December Delivery (Oct 10)
Company: ONGC Videsh more info
- India's ONGC Videsh to Spend Over $3 Billion on Iran Gas Block (Apr 04)
- India Clears ONGC's Extra 11% Stake Buy in Russia's Vankor Fields (Oct 05)
- ONGC Videsh Inks Deal with Rosneft to Up Stake in Russia's Vankorneft (Sep 15)
Company: Oil India more info
- India, Iran Plan to Seal Deal to Develop Offshore Farzad B Field by October (Jun 06)
- India Launches Auction for 67 Small Oil, Gas Fields Under a New Bid Scheme (May 26)
- ONGC Plans to Drill 17 Exploration Wells in India's Shale Oil, Gas Blocks (Apr 26)