OVL joins hands with Raspol, Petronas for Venezuelan fields

Oil and Natural Gas Corporation has replaced Reliance Industries with Repsol YPF SA, Spain's biggest oil company, and Malaysia's Petronas to bid for Venezuelan oil blocks next month.

ONGC Videsh, the overseas investment arm of state-run explorer, is likely to bid for the massive Carabobo project in Venezuela's Orinoco heavy oil belt with Repsol, Petronas, Indian Oil Corp (IOC) and Oil India, sources in know said.

The Latin American nation is offering a maximum of 40 per cent stake in the development of oil fields in the Orinoco Belt and the rest would be held by Venezuela's state oil company, Petroleos de Venezuela SA, or PdVSA.

Sources said Repsol and Petronas will hold 25 per cent interest while OVL would hold 10.1 per cent. IOC and OIL would have 2.45 per cent apiece.

Originally, OVL-IOC-OIL were to bid for one of the three giant blocks being offered with Reliance but the Mukesh Ambani-run firm in August walked out of the consortium possibly because of delays in the bidding.

Venezuela is likely to announce winners of the three blocks on January 28 - the same day it opens bids, they said.

Originally, OVL and Reliance were to equally divide 32-33 per cent stake leaving the rest for IOC and OIL.

OVL already has a 40 per cent stake in the 40,000 barrels per day San Cristobal oilfield in Venezuela.