Ovl, venezuela firm Ink div­i­dend pay­ment pact

Resource Digest - - RESOURCE DIGEST -

ONGC Videsh Lim­ited (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. The agree­ments were signed by ONGC Videsh CEO Mr Naren­dra K Verma and the Hon’ble Min­is­ter of Petroleum of Venezuela and Pres­i­dent PDVSA, Mr Eu­lo­gio Del Pino, in the au­gust pres­ence of Hon’ble Pres­i­dent of Venezuela, Mr Ni­co­las Maduro.

San Cris­to­bal project (Project) is lo­cated in the Zu­ata Sub­di­vi­sion of pro­lif­er­ous Hugo Chavez Fria Orinoco Heavy Oil belt, in the Junin­norte Block in east­ern Venezuela. The joint ven­ture was in­cor­po­rated in April 2008 con­se­quent to a Mem­o­ran­dum of Un­der­stand­ing (MOU) signed in March 2005 at New Delhi to jointly de­velop Oil and Gas Ex­plo­ration and Pro­duc­tion Projects in 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 bbl/day to 27,000 bbl/day by the use of wa­ter flood­ing tech­nique.

Ear­lier on 1st Au­gust 2015 ONGC Videsh and PDVSA had en­tered into a Mem­o­ran­dum of Co­op­er­a­tion on Train­ing and Ed­u­ca­tion un­der which ONGC Videsh has spon­sored train­ing for a batch of petroleum en­gi­neers from PDVSA in mas­ters pro­grams at the premier petroleum in­sti­tute of In­dia - In­dian School of Mines, Dhan­bad. The petroleum en­gi­neers upon com­ple­tion of their spe­cial­ized course shall be posted in the joint ven­tures of ONGC Videsh with PDVSA.

The ONGC al­liance with PDVSA in the up­stream sec­tor is strate­gic in na­ture and will con­tinue to build and grow with strong co­op­er­a­tion, in or­der to achieve cor­po­rate goals.

ONGC’S mar­ket cap­i­tal­iza­tion as on 4th Novem­ber 2016 was INR 2,305.70 bil­lion (USD 34.56 bil­lion). Dur­ing the fi­nan­cial year ended 31st March, 2016, ONGC Group had pro­duced 57.38 MMT of oil and oil equiv­a­lent gas (MMTOE) (ap­prox. 1.2 Mm­boeper day); the Con­sol­i­dated Gross Turnover was INR 1,429 bil­lion (US$ 21.83 bil­lion) dur­ing FY’16.

ONGC Videsh is a wholly owned sub­sidiary of Oil and Nat­u­ral Gas Cor­po­ra­tion Lim­ited (ONGC), the Na­tional Oil Com­pany of In­dia, and is In­dia’s largest in­ter­na­tional oil and gas E&P Com­pany.

At present, ONGC Videsh has 37 projects in 17 coun­tries in­clud­ing Azer­bai­jan, Bangladesh, Brazil, Colom­bia, Kaza­khstan, Mozam­bique, Myanmar, Rus­sia, South Su­dan, Su­dan, Venezuela, Viet­nam and New Zealand. ONGC Videsh is cur­rently pro­duc­ing about 237,000 bar­rels of oil and oil equiv­a­lent gas per day.

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