India, Venezuela keen on expanding ties
New Delhi   06-May-2010

India and Venezuela have agreed to explore all possibilities for expanding the areas of cooperation between the two countries in the wake of the growing cooperation in hydrocarbon sector.

Speaking to newspersons after his meeting with the Minister of Petroleum and Natural Gas, Mr Murli Deora, here on Wednesday, Venezuela's Vice-Minister for Foreign Affairs, Mr Temir Porras Ponceleon, said his country is currently supplying 1,50,000 barrels per day (bopd) of crude oil to India and there was a potential to raise supplies.

At the meeting Mr Deora conveyed that the Indian companies would help ramp up production in Venezuelan oil fields, which could also be utilised by the upcoming refinery projects in India to herald long-term cooperation in the sector.

"We are ready for extra supplies to other refineries which are duly equipped to receive Venezuelan crude with special characteristics," Mr Ponceleon said.

Currently, Reliance Industries Ltd and Essar Oil are main buyers of Venezuelan crude oil. Other Indian refiners such as MRPL have shown interest in buying the Venezuelan crude oil.

The two Ministers agreed that the fruitful alliance in the energy sector could be replicated by investments in other sectors such as cement, pharmaceutical, and steel, iron ore to foster stronger long-term relations between the two nations.

Investments

It may recalled that the Indian public sector oil companies ONGC Videsh Ltd, Indian Oil Corporation and Oil India Ltd together have been recently awarded 40 per cent participating interest along with Repsol of Spain and Petronas of Malaysia to develop the Carabobo 1 Norte and Carabobo 1 Centro blocks in the Orinoco Heavy Oil Belt by the Government of Venezuela.

The remaining 60 per cent will be held by the subsidiary of Petroleos de Venezuela S.A (PDSVA), Venezuela's state oil company. The formal agreement for the project is expected to be signed on May 12.

Earlier OVL was awarded 40 per cent participating interest in San Cristobal field in April 2008. OVL is also carrying out the reserve assessment of Junin Norte area in the Orinoco belt of Venezuela.