ONGC in talks with RIL, IOC for Venezuelan bid

Oil and Natural Gas Corporation (ONGC), Reliance Industries (RIL) and Indian Oil Corporation (IOC), the nation's biggest companies, are stitching together an alliance to bid for developing a vast oilfield in Venezuela at a cost of $16-18 billion.

ONGC Videsh (OVL), the overseas arm of the state explorer, is talking to RIL, IOC and Oil India to jointly bid for 40 per cent stake in fields in the vast Orinoco heavy crude oil belt.

"We are evaluating the three massive fields that are on offer and will decide on bidding shortly," a top OVL official told reporters here.

Venezuela is offering 40 per cent stake in massive projects in the Carabobo region of the Orinoco belt that would produce tar-like oil that would need to be upgraded into higher-quality synthetic crude. Its state oil firm Petroleos de Venezuela SA (PdVSA) will retain the remaining 60 per cent.

"The investment required is massive. The crude upgrade facility alone will cost $6-8 billion and so we are looking at partnership with other companies," he said.

IOC may take 2.5-5 per cent stake while OIL has been assigned 2.5 per cent stake. The remaining 32.5-35 per cent will be split almost equally among OVL and RIL.

Each of the three fields on offer can produce 2,00,000 to 400,000 barrels per day of oil (10-20 million tonnes a year).