Consortium to carry out $20bn Venezuala project
14 May 2010
London – The government of the Republic of Venezuela has recently awarded a consortium a 40% stake in a company to carry out the $20bn Carabobo-1 project, in Orinoco Region of Venezuela. The consortium comprises ONGC Videsh Ltd (11%), Indian Oil Corp. Ltd (3.5%), Oil India Ltd (3.5%), Repsol YPF (11%) and PETRONAS (11%).
The Corporación Venezolana del Petróleo (“CVP”), a subsidiary of Petróleos de Venezuela S.A. (“PDVSA”), Venezuela’s state oil company, will hold the remaining 60% equity interest. The joint entity will develop the Carabobo 1 Norte and Carabobo 1 Centro blocks located in the Orinoco Heavy Oil Belt, including building heavy oil production facilities, upgrading facilities and associated infrastructure.
Upstream production facilities are expected to produce around 400,000 barrels per day of extra heavy oil of which approximately 200,000 barrels per day will be upgraded into light crude oil in a facility to be located in the Soledad area, Anzoátegui State. The license term will be for 25 years with the potential for a further 15 year extension.
The project costs are estimated at $15- 20bn and is one of India’s major investments in the Latin American oil major, said an Indian Oil statement.
