ONGC gains after signing agreements to facilitate redevelopment of Venezuelan project

14 Nov

indiainfoline.com 11 Nov, 2016

ONGC Videsh 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 on 4th November, 2016. San Cristobal project is located in the Zuata subdivision of proliferous Hugo Chavez Fria Orinoco Heavy Oil belt, in the Junin Norte Block in eastern Venezuela. ONGC Videsh has an equity interest of 40% in the project with PDVSA holding the balance 60%. The agreements provide for mechanism to liquidate ONGC Videsh’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 barrels per day (bbl/day) to 27,000 bbl/day by the use of water flooding technique.

 

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