ONGC Videsh Ltd and Reliance Industries Ltd on Thursday inked separate agreements with Venezuela’s State exploration company PdVSA, a prominent player in the sector, to prospect for oil in the South American country.

Venezuela has become important for India’s energy scene, as crude sourcing from countries such as Iran have been affected following international, particularly US, pressure. Indian companies have been eyeing equity abroad to enhance the country’s energy security.

In a statement, Reliance said it had signed a joint study agreement with Petroleos de Venezuela, SA (PdVSA) for Ayacucho Block 8 in Orinoco Oil Belt.

According to the agreement, both the parties will evaluate the development plan for Ayacucho 8.

RIL and PdVSA have also extended by a year the term of the memorandum of understanding (MoU) signed last October.

Both the companies had signed a 15-year heavy crude oil supply contract and an MoU for further development of Venezuelan heavy oilfields last year.

The crude supply contract envisaged flow of 300,000-400,000 barrels a day of Venezuelan heavy crude oil to Reliance’s two refineries in Jamnagar. In a separate statement, OVL said the agreement with PdVSA encompassed strategic co-operation and participation in the exploration and production of hydrocarbon resources in the oil-rich Faja area of Venezuela.

The MoU will facilitate OVL and PdVSA to explore available opportunities through joint collaboration and enhance OVL's interest in Venezuela, the statement added.

Sudhir Vasudeva, Chairman, ONGC group of companies, said: “Venezuela has world’s highest reserves and we have a huge market. We intend to use this opportunity to further our interests in this oil rich country”.

OVL currently has stakes in two producing projects in Venezuela — Petro-Carabobo and Petro-Indovenezolana — with investments of about $341 million.

>richa.mishra@thehindu.co.in .

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