ONGC Videsh Ltd, the overseas investment arm of ONGC, and Petroleos De Venezuela S.A. (PDVSA) through their relevant subsidiaries signed two definitive agreements for facilitating redevelopment of the San Cristobal joint venture project in Venezuela.
The agreements were signed on November 4, according to an official statement.
The agreements provide for mechanism to liquidate OVL’s outstanding dividends from the project, while at the same time, ONGC Videsh needs to obtain long-term financing for the capital investments for implementing the Remediation Plan of the project.
The Remediation Plan aims to invigorate the field from its current production level of about 18,000 bbl/day to 27,000 bbl/day by the use of water flooding technique.
San Cristobal project is located in the Zuata sub-division of proliferous Hugo Chavez Fria Orinoco Heavy Oil belt in the Junin Norte Block in eastern Venezuela. The joint venture was incorporated in April 2008 consequent to a memorandum of understanding signed in March 2005 to jointly develop oil and gas production projects in Venezuela.
ONGC Videsh has an equity interest of 40 per cent in the project with PDVSA holding the balance 60 per cent. The agreements were signed by ONGC Videsh CEO Narendra K Verma and the Minister of Petroleum of Venezuela and President PDVSA, Eulogio Del Pino.