New investment arrangement for Venezuelan oilfield

ONGC Videsh (OVL) and Petroleos De Venezuela SA (PDVSA) have signed two agreements for facilitating redevelopment of their San Cristobal joint venture project in that country.
 
Signed on November 4, these provide a mechanism to liquidate dividends due to ONGC Videsh. At the same time, OVL needs to long-term financing for the capital investment in a remediation plan, to invigorate the field from its current production of about 18,000 barrels a day to 27,000 bbl a day.
 
OVL, foreign arm of state-owned Oil & Natural Gas Corporation, owns 40 per cent of San Cristobal and had invested about $190 million in 2008. PDVSA holds the remaining stake. The venture was a sequel to an agreement in 2005.
 
Earlier in August, OVL and PDVSA had signed a memorandum for cooperation on training and education, under which ONGC Videsh sponsored training for a batch of petroleum engineers from PDVSA in a master's degree programme at the Indian School of Mines, Dhanbad.