Production starts at OIL's Venezuela fields

The field eyes 90,000 barrels per day by 2015 end

With presence in 19 exploration and production blocks overseas, Oil India Ltd (OIL) today announced crude oil production from its Venezuelan field. This is the first crude oil production from the company's overseas block.

OIL has a minor 3.5% stake in the joint venture company Petrocarabobo SA, which is developing two blocks in Orinoco Heavy Oil Belt. “The current production is coming from first development well under accelerated early production plan of the project.

The well is presently under stabilization and producing few hundred barrels of heavy oil per day. The development would be on full swing and it is expected to achieve a target of around 90,000 barrels per day under the accelerated early production plan by the end of 2015,” the company said in a statement today.

While Venezuela's state energy monopoly Petroleos de Venezuela (PdVSA) holds the majority stake in the joint venture with 60% stake, Spain's Repsol and Petronas of Malaysia have 11% each.

The other Indian majors who are part of the project, apart from Oil are Oil and Natural Gas Corp (ONGC), with 11% and Indian Oil Corp (IOC) with 3.5% stake. The joint venture consists of two heavy crude reserves in Orinoco Oil Belt.

Production had started in the fields in December. It is one of the biggest natural gas projects in the world. The project, when it is fully developed as per its master development plan, is expected to produce around 4,00,000 bbl per day and will involve construction of an upgrader to make the heavy crude transportable through pipeline network.