Indian Oil Corporation Ltd (IOC) has informed BSE that: "An international consortium comprising Indian Oil Corporation Ltd. ("IOC"), ONGC Videsh Ltd. ("OVL"), Repsol YPF ("Repsol"), Petroliam Nasional Berhad ("Petronas") and Oil India Ltd. ("OIL") (collectively, the "Consortium") was awarded by the Government of Venezuela the right to acquire 40% interest in an "Empresa Mixta" (or "Mixed Company"), which would develop Carabobo 1 North and Carabobo 1 Central blocks located in the Orinoco Heavy Oil Belt, as well as associated upgrading and infrastructure projects. The Orinoco Oil Belt contains the largest accumulation of oil in Venezuela, with estimated oil-in-place of over 1.0 trillion barrels. The 7 blocks included in 3 projects in the Carabobo region are estimated to contain 128 billion barrels of heavy oil-in-place and the volume of crude oil recoverable from each project has been estimated to be around 3 to 3.4 billion barrels. The multi-billion dollar project is one of the largest integrated energy projects in the world. Corporacion Venezolana del Petroleo S.A. ("CVP"), a subsidiary of Petroleos de Venezuela ("PdVSA"), Venezuela's state oil Company, will hold 60% equity interest in the Mixed Company, which will have an initial license term of 25 years that can be extended by further 15 years. The Mixed Company will construct heavy oil production facilities, upgrading facilities and associated infrastructure. The upstream production facilities will produce about 400,000 barrels per day of extra heavy oil, which will be upgraded into light crude oil in an upgrading facility to be located in the Soledad area, Anzoategui State in Venezuela."
Source: BSE
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