ONGC bids for Venezuela oil block

Last Updated: Saturday, January 30, 2010 - 00:14

New Delhi: Oil and Natural Gas Corp (ONGC)
has bid for Venezuela`s Carabobo oil auction along with
Spain`s Repsol YPF SA and Petroliam Nasional Bhd of Malaysia.

Other members of the consortium pieced together by ONGC Videsh - the overseas arm of state-owned firm, include Indian Oil Corp and Oil India Ltd, sources in the know said.
The consortium is believed to have bid for Carabobo Norte
I, one of the three blocks that were on offer, they said.

Bidding for Carobobo round closed yesterday that also saw
a consortium made up of the US energy major Chevron,
Venezuela`s Suelopetrol and Japanese firms Mitsubishi, Jogmec
and Inpex putting a bid.

Royal Dutch Shell Plc too submitted an offer but UK`s BP
Plc did not make a bid. It wasn`t immediately clear if Italy`s
Eni SpA - the other qualified company for the auction -had

The Carabobo bidding is for three areas spread over seven
promising blocks in the heavy and extra-heavy Orinoco oil belt
in eastern Venezuela. Results will be known by February 10.

Each of the three blocks would require an investment of
up to USD 30 billion and each winning bidder would form a
joint venture with state oil producer Petroleos de Venezuela
SA (PdVSA). PdVSA would have a 60 per cent stake, while the
winning companies would have a 40 per cent stake.

Sources said Repsol and Malaysia`s Petronas will hold 25
per cent interest while OVL would hold 10.1 per cent. IOC and
OIL would have 2.45 per cent a piece.


First Published: Saturday, January 30, 2010 - 00:14

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