India, Venezuela ink pact to develop $20-billion oil project

Discussion in 'Politics & Society' started by ganesh177, May 14, 2010.

  1. ganesh177

    ganesh177 Regular Member

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    In a big-ticket investment aimed at giving a boost to its holding of oil and gas assets abroad, the Oil and Natural Gas Corporation Videsh Limited (OVL), along with its partners, entered into an agreement with the Venezuelan government on Thursday to develop a $20-billion oil project in that country.

    The project is expected to give India 3.6 million tonnes of crude a year. OVL and its partners signed the agreement with Petroleos de Venezuela SA (PdV) for development and production of hydrocarbons from the Carabobo project in Orinoco region.

    The agreement was signed in Caracas in the presence of Venezuela President Hugo Chavez, Petroleum and Natural Gas Minister Murli Deora, Petroleum Secretary S. Sundereshan, ONGC chairman R.S. Sharma, OVl Managing Director R.S. Butoal and IOC chairman B.M. Bansal.

    Spain's Repsol-YPF SA, Petroliam Nasional Bhd (Petronas) of Malaysia and OVL each hold 11 per cent stake in the consortium that will produce 400,000 barrels of oil a day. IOC and Oil India Limited will each have 3.5 per cent interest in the joint venture to develop the Carabobo 1 Norte and Carabobo 1 Centro blocks, located in the Orino Heavy Oil Belt. Corporacion Venezolana del Petroleo, a unit of PdV, will hold the remaining equity. About half of the production from the joint venture, called PetroCarabobo SA, will be upgraded as light crude oil for export.

    http://beta.thehindu.com/news/national/article429248.ece.
     
    Last edited: May 14, 2010
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  3. Rebelkid

    Rebelkid Regular Member

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    GReat news !!! More resources for our future
     
  4. rojesh

    rojesh Regular Member

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    Semisub sinks offshore venezuela

    The Aban Pearl semisubmersible rig sank off the Venezuelan coast near Trinidad and Tobago at approximately 2:20 a.m. local time Thursday, Dow Jones Newswires reported citing a "tweet" from President Hugo Chavez' Twitter account.

    According to Rigzone sources, two people may have died in the incident. Venezuelan officials, however, reported that all 95 workers aboard the rig were safely evacuated. In addition, they contend the incident poses no threat to the environment.

    Petroleos de Venezuela S.A. (PDVSA) was operating the rig in the Gulf of Paria in the Campo Dragon gas field. Dow Jones quotes PDVSA President and Venezuelan Oil Minister Rafael Ramirez as saying that the rig was disconnected from the well, eliminating the risk of a gas leak. According to the news report, workers on the rig began reporting problems at approximately 11 p.m. Wednesday and that the rig began taking on water an hour later.

    The Aban Pearl is owned by India-based Aban Offshore. According to RigLogix, the Aker H-3 semisub was rated to work in water depths up to 1,250 ft and could drill to 25,000 feet. Built by Far East Levingstone in Singapore at a cost of $50 million, the rig entered service in 1977. Aban Offshore purchased the rig from Fred Olsen in 2007 for approximately $211 million.

    PDVSA had the Aban Pearl under contract since August 2009 at the daily rate of $370,000. Prior to the PDVSA contract, the Aban Pearl was under contract in June 2007 in Nigeria working for Equator Exploration.
     
  5. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    Orinoco tar sands are heavy oil that requires alot of processing cost to obtain. Many countries have shied away from it due to its prohibitive cost.
     
  6. sob

    sob Moderator Moderator

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    In India the new Refinery from reliance is capable of processing these heavy grades of crude from Venezuela. Earlier Reliance had been procuring Crude oil for processing from Venezuela, but due to cost differentials had started to source heavy crude from Middle East.
     
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  7. death.by.chocolate

    death.by.chocolate Defence Professionals Defence Professionals

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    Venezuelan production is mostly Orimulsion (70% extra-heavy oil, 30% water) it is primarily used as industrial broiler fuel as an alternative to coal.
    I'm not sure transporting and refining this in India is economically viable. I'm pretty sure they will continue to refine it at the ConocoPhillips refinery near by in Sweeny, Texas.
     
  8. Phenom

    Phenom Regular Member

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    If the govt would let the oil price fluctuate, as per the market rate, then ONGC would have more money and would be able to compete in better projects, but with all the constraints they have, this is probably the best they could get.

    Still good for them, something is better than nothing =heheh
     
  9. sob

    sob Moderator Moderator

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    Relaince and Essar have been processing Venezuelan crude,
    http://in.reuters.com/article/businessNews/idINIndia-48251220100505
     
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