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The first oil production of OVL was from Greater Nile Oil Project (GNOP), Sudan which was acquired as a producing asset in March 2003. Soon before that production of gas began from Block 06.1, Vietnam in January 2003. OVL acquired Sakhalin-1, Russia in July 2001 where oil production started from October, 2005. OVL acquired Block 5A, Sudan in May 2004 as an exploratory asset and oil production started from June, 2006. OVL acquired producing assets under Al Furat Petroleum Company in Syria during July 2005. OVL also acquired oil producing blocks in Colombia in Sept. 2006 under its joint venture company named Mansarovar Energy Colombia Limited. OVL acquired Block BC-10, Brazil in April 2006 at development stage where first oil was produced in July 2009 two months ahead of schedule. OVL further acquired producing assets - Sancristobal Project, Venezuela in April 2008 and Imperial Energy Corporation Plc, Russia in January 2009. In May 2010, OVL acquired 11% participating interest in Carabobo-1 project in hydrocarbon rich Orinoco belt of Venezuela, with proposed investment of USD 1.3 billion. The projected peak production is about 400,000 bopd and the first oil is expected in 2013.
OVL signed agreements with KazMunaiGas (KMG), the National Oil Company of Kazakhstan for acquisition of 25% participating interest in Satpayev exploration block located in Caspian sea in April, 2011. The total investment of OVL during the exploration and appraisal phase is expected to be about USD 400 million. OVL which had only one asset in 2000 in Vietnam, today it has participation in 30 projects in 15 countries namely Vietnam (1 project), Russia (2 projects), Sudan (2 projects), South Sudan (2 projects),Iraq (1 project), Libya (1 project), Myanmar (2 projects), Syria (2 projects), Cuba (2 projects), Brazil (4 projects), Nigeria (1 project), Colombia (6 projects), Venezuela (2 project) and Kazakhstan (1 project) and is actively seeking more opportunities across the world. OVL had successfully completed 741 Km pipeline project in Sudan in 2005. Out of 30 projects, OVL is operator in 8 projects and joint operator in 7 projects.
ONGC Videsh Limited - Working globally for the energy security of India
Introduction ONGC Videsh Ltd. (OVL) a Miniratna Schedule A Central Public Sector Enterprise (CPSE) of the Government of India under the administrative control of the Ministry of Petroleum & Natural Gas is the wholly owned subsidiary and overseas arm of Oil and Natural Gas Corporation Limited (ONGC), the flagship national oil company (NOC) of India. The primary business of OVL is to prospect for oil and gas acreages outside India, including exploration, development and production of oil and gas. OVL owns Participating Interests in 32 oil and gas assets in 16 countries and contributes to 12% and 7 % of oil and natural gas production of India respectively. In terms of reserves and production, OVL is the second largest petroleum Company of India, next only to its parent ONGC. GENESIS, BACKRGOUND and the evolutionary story of OVL History and Background
OVL was incorporated as Hydrocarbons India Pvt. Ltd. on 5 March 1965 to carry out exploration and development of the Rostam and Raksh oil fields in Iran and undertaking a service contract in Iraq. The company was rechristened as ONGC Videsh Limited on June 15, 1989 with the prime objective of marketing the expertise of ONGC abroad. The nineties saw the Company engaged in limited exploration activities in Egypt, Yemen, Tunisia and Vietnam. In its new avatar as ONGC Videsh, the company from mid-nineties re-oriented its focus on acquiring quality overseas oil and gas assets.. Realizing the associated necessity of special empowerments, the Company was granted special empowerment by the Government of India in January 2000 whereby power to take investment decisions up to ` 200 Crore was delegated to the Board of Directors of ONGC Videsh. In addition, a fast track approval system was put in place for investments beyond power of the Board for approval by the Cabinet Committee on Economic affairs (CCEA) through Empowered Committee of Secretaries (ECS). The delegated authority of the Board was enhanced to ` 300 Crore or US$ 75 million, whichever is less, in February 2005. In 2011, the Govt. has upgraded the OVL Board to Mini Ratna (Category-1) status and in August 2012 it has been upgraded from Schedule B to Schedule A. The special empowerment facilitated ONGC Videsh to successfully acquire oil and gas assets in foreign countries. ONGC Videsh, which had one asset in year 2000, gradually succeeded in competing with the best in the international arena, and could conclude many large transactions across the world in subsequent years. Current Assets Portfolio
OVL has stake in 32 oil and gas projects in 16 Countries, Viz. Vietnam (2 projects), Russia (2 projects), Sudan (2 projects), South Sudan (2 projects), Iran (1 project), Iraq (1 project), Libya (1 project), Myanmar (2 projects), Syria (2 projects), Cuba (1 project), Brazil (2 projects), Nigeria (1 project), Colombia (8 projects), Venezuela (2 projects), Kazakhstan (1 project) and Azerbaijan (2 projects). OVL had ventured into midstream and had successfully completed 741 Km product pipeline project in Sudan in 2005. In March 2013, it acquired 2.36% stake in the BTC pipeline as part of its acquisition of stake in Azerbaijan. OVL adopts a balanced portfolio approach and maintains a combination of producing, discovered and exploration assets. Currently, OVL has oil and gas production from 11 Assets, namely, Russia (Sakhalin-I
and Imperial Energy), Syria (Al-Furat Petroleum Co.), Vietnam (Block 06.1), Colombia (MECL), Sudan (Greater Nile Petroleum Operating Company), South Sudan (Greater Pioneer Operating Company and Sudd Petroleum Operating Company), Venezuela (San Cristobal), Brazil (BC-10) and Azerbaijan (ACG). Imperial Energy, Russia (100% PI) is one producing asset operated by OVL while five assets namely GNPOC, Sudan; GPOC and SPOC, South Sudan; MECL, Colombia and Sancristobal, Venezuela are jointly operated. Five Assets where hydrocarbons have been discovered and are at various stages of development as on 31st March, 2013 Viz. Petro Carabobo-1 Venezuela, Block 24 Syria, Block A1 & Block A3 Myanmar and Farzad B Iran, of these, one is operated. There are 14 Assets under various stages of Exploration out of which 8 exploration acreages are operated by OVL, 2 are jointly operated and remaining 4 are non- operated. New Horizons RECENT Acquisitions
OVL made three acquisitions in FY 2012-13. It acquired stakes of Hess Corporation subsidiaries in upstream and midstream assets in Azerbaijan on 28th March 2013. The assets include 2.7213% PI in Azeri, Chirag and deepwater Guneshli (ACG) fields in the Azerbaijan sector of Caspian Sea. British Petroleum operates the fields on behalf of Azerbaijan International Operating Company (AIOC), a consortium of BP (35.79% PI), SOCAR (11.65%), Chevron (1.1.27%), INPEX (10.96%), Statoil (8.56%), ExxonMobil (8.0%), TPAO (6.75%), Itochu (4..30%) and OVL (2.72%). OVL also acquired the 2.36% PI in Baku-Tbilisi-Ceyhan (BTC) pipeline held by Hess. BTC Pipeline is operated by BP and owned by the consortium of SOCAR, Chevron, INPEX, Statoil, TPAO, ltochu, TOTAL, ENI and Conoco Phillips. ACG is the largest oil and gas field complex of Azerbaijan with 354 MMT of proven reserves as on 31st March 2013. The field produced 652, 000 barrels of oil per day in 2012-13. OVL also acquired stakes in two exploration blocks in Colombia in 2012-13. Block GUAOFF-2 was acquired in Colombia Bid Round-2012 and the E&P Contract was signed on 3rd December 2012. The block is contiguous to OVLs operated block RC-10 in Caribbean offshore and is spread over an area of 1171.34 SKM. Another block Llanos 69 (LLA-69) was acquired in the same bidding round through Mansarovar Energy Colombia Limited (MECL) - a 50-50 joint venture company of OVL and Sinopec. It is an onshore block in the prolific Llanos basin of Colombia. OVL in a 50:50 consortium with another Indian oil PSU (with OVL as the operator) has submitted the bid on 2nd April, 2013 for two shallow water blocks in Bangladesh namely SS-04 and SS-09. Both the blocks are awarded to the consortium and PSC initialed in September 2013 and signing is likely in October 2013. ONGC Videsh Limited (OVL) and Oil India Limited (OIL) have signed definitive agreements on 25th June 2013 with Videocon Mauritius Energy Limited to acquire 100% of shares in Videocon Mozambique Rovuma 1 Limited, the company holding a 10% participating interest in the Rovuma Area 1 Offshore Block in Mozambique (Area 1) for US$ 2,475 million. The transaction is expected to close in the fourth quarter of 2013. ONGC Videsh Limited (OVL) has signed definitive agreements on 24th August 2013 with Anadarko Moambique Area 1 Limitada (Anadarko) to acquire a direct 10% participating interest (Interest) in the Rovuma Area 1 Offshore Block in Mozambique (Area 1) for US$ 2,640 million.
Performance
Highlights
OVL is the first Indian Company to produce equity oil and gas abroad. OVLs production started in 2002-03 from start-up production of Block 06.1 in Vietnam in January 2003 and from Greater Nile Oil Project in Sudan in March 2003, aggregating a meager 0.25 MMToe in FY 2002-03. With sustained growth in production from its acquired assets, OVL registered the highest production of 9.448 MMtoe in 2010-11. This was followed by 8.753 MMTOE achieved in 2011-12, which translates to a Compound Annual Growth Rate (CAGR) of 10.75% till 2011-12. Adverse geo-political conditions in Sudan and South Sudan and force majeure situation in Syria has caused decline in oil production to a level 7.260 MMToe in 2012-13. Year-wise production of oil and gas from inception till 2012-13 is shown in Table 2 below.
Key Key financial performance of OVL in last three years are given (`. in million)
Financials as below:
OVLs cumulative investment up to 31st March, 2013 was USD 16.75 billion of which 73% has been financed through internal accruals. Building Social Capital Engaging with communities and Society
Fulfilling social responsibility as a corporate citizen is part of the foundational ethos of Indian Public Sector Enterprises. OVL operates as responsible global corporate citizen by positively engaging with the communities and society where it operates. OVL is committed to create a positive and lasting social impact by developing successful partnerships built on mutual trust and respect, ultimately raising the standard of living and the stability of the communities of the countries in which the Company operates. OVL makes valuable contribution in many ways e.g. through payment of tax revenues to governments; by investing in education and training and improving employment
opportunities for nationals; providing medical/sports/agricultural facilities to the local community etc. Keeping in view the CSR guidelines issued by DPE, ONGC Videsh has framed CSR Policy for achieving the CSR objectives in all its overseas Projects / Assets. Budget of 0.5% of previous years Profit After Tax (PAT) or target as per MOU with ONGC, whichever is higher has been allocated towards CSR every year from financial year 201112 onwards. This budget allocation is nonlapsable. The Company spent ` 239 million and ` 208 million on CSR activities during FY12 and FY13 respectively. OVERSEAS OFFICES
OVL has 22 overseas offices, located in HoChi Minh City (Vietnam),Yuzhno Sakhalinsk (Russia), Baghdad (Iraq),Tehran (Iran), Tripoli (Libya), Havana (Cuba), Caracas (Venezuela), Astana & Atyrau (Kazakhstan), Bogota (Colombia), Damascus (Syria), Calgary (Canada) and Baku (Azerbaijan). ONGC Nile Ganga BV has its registered office in Amsterdam (Netherlands), in Khartoum (Sudan), Juba (South Sudan) and its subsidiaries have offices in Rio de Janeiro (Brazil) and Nicosia (Cyprus). ONGC Narmada Limited and ONGC Amazon Alaknanda Limited have their registered offices in Lagos (Nigeria) and Hamilton (Bermuda) respectively. Imperial Energy Limited has its registered office in Cyprus and its subsidiaries have offices in Cyprus, Moscow and Tomsk. Carabobo One AB has its registered office in Sweden. ONGC (BTC) Limited has registered office at Cayman Islands. Competitive Strengths
OVL operates in highly competitive international oil and gas sector by competing with the best in the industry. Over the years, OVL has built inherent capabilities and expertise in its areas of operations. OVL has developed strong partnership alliance with a host of IOCs and NOCs including ExxonMobil, British Petroleum, Shell, ENI, Total, Repsol, Statoil, Chevron, Petrobras, Sodeco, Socar, Rosneft, Daewoo, Kazmunaigaz (KMG), Petro Vietnam, CNPC, Sinopec, PDVSA, Petronas and Ecopetrol. It has highly skilled human resource with excellent technical and management capabilities. The company has built facilities for evaluation, interpretation, economic modeling, FEED, design and execution of oil and gas projects and enjoys the technical and human resource support from ONGC. OVL has developed core expertise in due diligence, techno-commercial evaluations, bid negotiations and transaction documentations. Looking ahead
OVL is focused to support Indias oil and gas security through overseas participation in oil and gas Exploration and Production activities. As per ONGC Groups Perspective Plan 2030, OVLs oil and gas production should increase from the existing level of 7.26 MMToe to 20 MMToe by 2017-18 and 60 MMToe by 2029-30. This translates to a CAGR of 22.5% during 5 years till FY18 and 9.5% during FY18 to FY30. The emerging industry landscape augurs well for the company as it evolves into a leading New Multinational Oil Company (NMOC). As a NMOC, the company is positioning itself to be a key ONGC growth vehicle by aiming for 60MMTOE production by 2030. The target requires Producing/Developing acquisitions initially and then also on exploration acreage to yield additional 50 MTOE/ Year by 2030. This will involve substantial fund requirement and OVL may have to use full headroom of balance sheet of ONGC and OVL to finance these acquisitions coupled with equity and project financing. This entails acquiring, retention and training of manpower with specific skill sets and re organizing internal processes and systems in tune with future requirements. Recognition and Rewards
OVL has been conferred with the prestigious SCOPE Award for Excellence and Outstanding Contribution to the Public Sector Management for 2009-10. The award was presented by Dr. Manmohan Singh, Hon'ble
Prime Minister of India on 31st January 2012. OVL has emerged as Indias most internationalized company based on the Transnationality Index (TNI) as per survey conducted jointly by Indian school of Business (ISB), Hyderabad and Fundacao Dom Cabral (FDC), Brazil.
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Our
Vision
To be a world-class exploration and production company providing energy security oil to the country.
Our Objectives
To support India's energy
security To build balanced portfolio of exploration, producing countries discovered assets in and focus
To build a team that excels in performance and technologies through assimilation of best practices
Be the strongest Indian Player in the international E&P Build collaborative relations with partners
Our
As of 31st projects
Footprint
March, 2013, OVL has a presence in 32 in 16 countries:
Myanmar | Russia | Vietnam | Iran | Iraq | Syria | Libya | Nigeria Sudan and | Azerbaijan | South Sudan | Brazil |Colombia | Cuba | Venezuela |Kazakhstan
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Assets Venezuela
San Cristobal Project :
Your Company signed an agreement with Corporacin Venezolana del Petrleo S.A. (CVP), a subsidiary of PDVSA on 8th April, 2008 and acquired 40% PI in San Cristobal Project, Venezuela. San Cristobal project covers an area of 160.18 Sq. Km in the Zuata Subdivision of proliferous Orinoco Heavy Oil belt in Venezuela. The project is operated jointly by your Company and the PDVSA. The JV Company has been named Petrolera IndoVenezolana SA (PIVSA). CVP, a subsidiary of PDVSA holds 60% equity in JVC and Your Company holds 40% equity through ONGC Nile Ganga (San Cristobal) BV, a wholly owned subsidiary of ONGC Nile Ganga B.V. Though your Company received its dividend of USD 56.224 million for 2008, dividend for 2009 and 2010 amounting to USD 72.34 million and USD 83.2 million respectively remained unpaid due to cash flow difficulties being faced by PDVSA/CVP, which is being followed-up. In April 2011, new special contribution (windfall tax) on extraordinary/exorbitant prices had been imposed in Venezuela at sliding scales from 20% to 95% depending upon Venezuelan oil basket prices, Your Companys share of windfall tax levied by the host Government during the year was USD 168.89 million, having downward impact on profit of your Company .
During 2011-12, your Companys share of oil production was 0.894 MMT as compared to 0.757 MMT during 2010-11 and current production is approx. 40000 bopd. Your Companys share of investment was about USD 191 million till 31st March, 2012 in the project. Carabobo-1 Project
Your Company along Indian Oil Corporation Limited (IOCL), Oil India Limited (OIL), Repsol YPF (Repsol) and Petroliam Nasional Berhad (PETRONAS) (collectively, the Consortium), was awarded by the Government of the Bolivarian Republic of Venezuela 40% ownership interest in an Empresa Mixta (or Mixed Company") which will develop the Carabobo 1 North (203 sq.km.) and Carabobo 1 Central (180 sq.km.) blocks located in the Orinoco Heavy Oil Belt in eastern Venezuela. Your Company holds 11% PI in Carabobo-I project through its subsidiary Carabobo One AB. Repsol and Petronas holds 11% PI each and IOCL and OIL holds
3.5% PI each in the project. The Corporacin Venezolana del Petrleo (CVP), a subsidiary of Petrleos de Venezuela S.A. (PDVSA), Venezuela's state oil company, holds the remaining 60% equity interest. The Mixed Company was incorporated as Petro Carabobo S.A. (PCB). The project has estimated Oil in Place of about 27 Billion barrels. The Mixed Company would build heavy (8-90 API) oil production facilities, upgrading (320 API) facilities and associated infrastructure for producing extra-heavy crude oil. The upstream production facilities are expected to produce about 400,000 barrels per day of which approximately 200,000 barrels per day will be upgraded into light crude oil in a facility to be located in the Soledad area, Anzotegui State. The license term is for 25 years with the potential for a further 15 year extension i.e., for a total of 40 years. One Service Company Carabobo Ingenieria Y Construcciones S.A (CICSA) for executing the Jobs under Development plan has been incorporated on 21st January 2011. Four Stratigraphic wells and six slant wells drilled for collection of samples and study of petrophysical properties for drilling development wells for accelerated production of first oil in 2013. Presently, basic engineering & FEED for upgrader and downstream facilities and 3D-Seismic study, civil works for well pads have been awarded and other tendering Processes/approval from PCB & awarding of drilling contract for Development of the Field are in progress.
Financial Highlights
Company News
National 14 March, 2014 Message 14 March, 2014 CMD's 05 March, 2014 Message 05 March, 2014 D K Sarraf appointed as new Chief of Director Finance on message on OVL of Dr. Anil Bhandari Director Safety Day observed
Conferenc
INTERACTIVE SESSION WITH BUSINESS PARTNERS, ORGANIZED BY IMPERIAL ENERGY GROUP, ONGC VI RUSSIA. 02 January, 2014
for
Class
III
posts
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A1
level
for
posting
the
most
internationalized
Indian
Press Releases
Rejoinder Press Release on Economic Times news titled ONGC was under pressure to At on RIL: PSUs director for explor drilling 05 March, 2014 D 01 March, 2014 OVL announces additional acquisition of 10% interest in the Rovuma Area 1 K Sarraf takes over as CMD
Of
28 February, 2014 ONGC Videsh and Oil India signs Production Sharing Contract for Two Shallow water
Ex
17 February, 2014 I. ONGC notifies four discoveries during Q3 II. Q3 Gross Income up by 5% and Net Profit up by 28.1% despite 14 February, 2014 PRESS 12 February, 2014 T K Sengupta takes over as Director
(Offs
01 February, 2014 ONGC inks MoU with Mitsui for cooperation in pursuing petroleum and
27 January, 2014 K.S. Jamestin, ONGC Director (HR), becomes one of the 14 IPMA Level-A
Certified
24 January, 2014 ONGC 21 January, 2014 secures Golden Peacock Award for Corporate
Gallery
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Corporate Office
Caracas | Venezuela
Rajeev Passi | rajeev_passi@ongcvidesh.in Country Manager ONGC Videsh Limited Torre KPMG,Piso-3, Officina Nro. 3-2B, Avenue Francisco De Miranda, Chacao,Caracas,Venezuela Tel: +00-58-212-2667318 (Office), +00-58-412-9644848 Fax: +00-58-212-2638925
Asim Kumar Ghosh | ak_ghosh@ongcvidesh.in DGM (P) T&O Manager, Petro Carabobo, Edf. BVC- Piso 5k, Av, Intercomunal Jorge Rodriguez, Sector Las Garzas, Municipio Diego Bestista Urbaneja Lecheria, Edo-Anzoategui,Venezuela Tel: +58 281 2864722
Carabobo | Venezuela
D Sharan | devendra_sharan@ongcvidesh.in Technical & Operation Manager, Head OVL EI Tigre DGM (P) San Cristobal Project, Petrolera Indovenezolana, Av. Jesus Subero Centro Comercial San Remo Mall, Edificio Petrolera Indovenezolana , Piso 2. EI Tigre Edo - Anzotegui, Venezuela. Mobile: + 0058 426 5108 455, +0058 412 1802 556 Tel: + 0058 283 2304410 : + 0058 283 2414530
by
http://www.firstbiz.com/corporate/ongc-to-list-overseas-investment-arm-ovl-to-raise-funds-28210.html
ew Delhi: State-owned Oil and Natural Gas Corp (ONGC) is mulling listing its overseas investment arm ONGC Videsh Ltd (OVL) next year to raise funds for aggressive foreign acquisitions. ONGC in its Perspective Plan 2030 has set a target of production of OVL's overseas properties jumping to 20 million tons of oil and oil equivalent gas by 2017 and 60 million tons by 2030 from current over 9 million tons. "To achieve this, the company has to pursue aggressive acquisitions of both exploration and producing assets," a source with direct knowledge of the development said. "These kind of targets need several billion dollars, all of which cannot come from its parent ONGC".
Reuters
To meet huge requirement, the company may go for an initial public offering (IPO) of at least 10 per cent equity shares. "Preparatory work for the IPO will begin in next few days," he said. "The works involves preparation of updated financial accounts and appointment of independent directors". Thereafter, prospectus for the public offering would be prepared and merchant bankers appointed. "The IPO is not likely before 2013," the source said. OVL, which 31 overseas oil and gas projects besides interest in a couple of pipelines, is nation's second-largest exploration and production company. It is 100 per cent owned by ONGC. ONGC held "very preliminary" discussion with merchant bankers including Kotak Mahindra to understand the process involved in listing, the source said. Some brokerges have valued OVL at Rs 60,000 crore, adding Rs 71 to the value of the ONGC share. ONGC scrip closed at Rs 279.40 on the BSE yesterday. OVL listing is being seen as a measure the government may be planning to boost market sentiments. "One way of boosting market sentiments could be raising diesel and cooking fuel prices. The other could be to list a profitable company like OVL," an industry source said. The government had way back in 2005 considered hiving off OVL from ONGC. The idea, mooted when Mani Shankar Aiyar was the Petroleum Minister, was to make OVL as the sole vehicle for acquiring overseas oil and gas assets.
The idea was to restructure OVL into an entity that would be jointly owned by public sector oil firms. This was to be done to avoid 'confusing signals' that go out when OVL and other state firms like Indian Oil, GAIL India pitch for a same overseas asset. The idea was to restructure OVL on lines of Petronet LNG Ltd, which is jointly owned by ONGC, IOC, GAIL and Bharat Petroleum Corp Ltd. PTI
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The NDA comprises discoveries like Padmawati, Kanadurga, D, E, U, A, while the ultra deepsea UD find lies in SDA. Mr Verma said ONGC is looking at producing oil and gas from NDA using a floating production, storage and offloading (FPSO) unit. "We are also studying the economic and technical feasibility of using facilities at neighbouring KGD6 block," he said. While oil can be produced and stored at the offshore FPSO before being shipped to refiners, ONGC is exploring if some volumes can be diverted to RIL's infrastructure for onward transmission to Kakinada in Andhra Pradesh from where it can be sold to consumers. ONGC, which currently produces about 52 mmscmd of gas from its fields, will submit an investment plans for UD-1 separately, he added. Block KG-DWN-98/2, comprising of 7,294.60 square kilometers, was originally awarded to Cairn in the first round of auction under New Exploration Licensing Policy (NELP) in April 2000. Of this, 2,4623 sq km has been relinquished and ONGC currently holds 3,800.6 sq km in NDA and 3,494 sq km in SDA.
By http://pib.nic.in/newsite/erelease.aspx?reli d=85279
Ministry of Commerce & Industry11-July, 2012 10:45 IST
Shri Jyotiraditya Scindia seeks participation of Indian companies in petroleum and pharma sectors in Venezuela ONGC Videsh led Indian consortium to raise its investment in Venezuela to US$ 3 billion
Shri Jyotiraditya M. Scindia, Minister of State for Commerce and Industry, has conveyed to the Venezuelan leaders Indias desire to deepen and diversify economic cooperation between the two countries. Leading an official and business delegation, Shri Scindia met Mr. David Velasquez, Vice Minister for Foreign Affair, Venezuela. The two leaders reviewed the bilateral relations and expressed satisfaction over the growth in bilateral trade which has grown 12 times during the last four years. However, the Indian Minister emphasised the need to expand the trade basket as the current trade is dominated by petroleum imports from Venezuela. Mentioning that Venezuelan President Hugo Chavezs visit to India in the year 2005 has been successful in creating a strong bond between India and Venezuela, it is now time to translate cultural commonalities between the two countries into a strong economic bond. Shri Scindia identified healthcare, information technology, energy, mining, textiles and auto sector as having the maximum potential for increased cooperation. In particular, he stressed that the Indian Pharma companies can help the Venezuelan Government in its health Mission plan by supplying required critical drugs at an affordable price. He also requested the Venezuelan Minister to address the issues of the Indian companies operating in Venezuela in energy and IT sector to promote more investments by Indian companies. Shri Scindia also held bilateral level talks with Ms. Maria Eugenia Castellanos Sader, Minister for Health of the Bolivarian Republic of Venezuela and offered Indias assistance and cooperation in the healthcare sector. While assuring the Venezuelan Minister of supply of quality drugs by Indian companies at affordable prices, he also offered Indian expertise in creating health infrastructure. Currently Venezuela imports medicines worth US$ one billion annually. However Indias share in this is less than seven percent. He offered help to Venezuela in three specific fields in the pharma sector: supplying medicines for the social needs of people, creating infrastructure in health sector; and joint-research in the area of pharmaceuticals. Shri Scindia requested the Venezulan Minister to fast track the drug registration process to facilitate trade and investment by Indian pharma companies. It was also felt that in the proposed draft agreement for cooperation in health sector between the two countries pending with the Venezuelan Government, could incorporate specific clauses covering sourcing of pharma products from Indian companies, addressing the issue of delayed payments and creation of health infrastructure in Venezuela by Indian companies. Shri Scindia mentioned that as suggested by President Chavez, we can have a bi-national fund for pharma and oil to inter-alia enable timely payments. Shri Scindia also met Ms. Edmee Betancourt, the Minister of Commerce, Venezuela and reviewed the overall bilateral trade relations. The relationship is in true sense a complementary relationship as Indias energy deficit can be tackled by Venezuela, which in turn needs Indias help in manufacturing and engineering sectors. Shri Scindia also stressed the need to expedite finalisation of the Double Taxation Avoidance Agreement (DTAA) between India and Venezuela. For enhanced relationship in the energy sector, Shri Scindia mentioned that Indian public sector oil companies want to enter into agreements on a spot basis. ONGC Videsh has already invested $ 350 million and intends to invest additional $500 million in the San Cristobel
oil field. In addition, ONGC Videsh with an Indian consortium proposes to invest US$ 2.2 billion in the Carobobo project. GAIL would like to explore opportunities in the natural gas value chain. BPCL is keen to explore opportunities to export base oil to Venezuela and its marketing. Engineers India Limited (EIL) would like to provide its design and engineering services in the hydrocarbon sector. Shri Scindia mentioned that President Chavez has suggested a clear blueprint for this partnership: building a refinery in Venezuela in joint venture with a Venezuelan majority stake; building shipping lines between India and Venezuela; and building a joint venture refinery in India with a Indian majority stake. Based on this blueprint, the Indian Government has forwarded a proposal to Venezuela to participate in a refinery joint venture project in Odhisa with the Indian Oil Corporation. Some of the other issues which were brought to the attention of the Minister were the nationalisation of oil rigs, foreign exchange regulation restriction and policy of state to decide the rent. Delay in issue of business visa for Indian businessmen and restrictive foreign exchange regulations were also cited as impediments in the bilateral economic relation. The Venezulan Commerce Minister assured that the Venezuela will look into these issues. The Venezuelan side was also requested to suggest date for convening the second meeting of the India Venezuela Joint Commission Meeting. Shri Scindia also mentioned that a letter of intent was signed in the year 2005 between IRCON and IAFE (railway authority of Venezuela) to execute a railway project Punto Fijo-Yaracal in Falcon State of Venezuela. However this has been stalled due to lack of funds. Suggesting that India has wealth of experience in this field, Shri Scindia suggested revival of the proposal. Earlier, Shri Scindia attended a meeting in the Hydrocorbon Association of Venezuela during which he expressed Indias desire in participating in Venezuelas petroleum sector, exploration, production as well as refining. During a bilateral meeting with the Vice Minister and Vice President of PDVSA Mr. Evlogio del Pino, Shri Scindia reiterated Indias desire to cooperate in the E&P, refining and marketing; creation of infrastructure in the hydrocarbon sector through the Indian public sector companies like GAIL, BPCL, OVL and EIL. Regarding the delayed payment of dividends, he asserted that payment of dividend to OVL for the year 2009 should precede further investment of $500 million in the San Cristobal field. ****
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Tags:
Venezuela| Salman Khurshid| Reliance Industries| ONGC Videsh Limited| Oil India Ltd| Indian Oil Corporation| Elias Jaua Milano
NEW DELHI: India and hydrocarbon-rich Venezuela today held wide-ranging discussions on further enhancing cooperation in diverse sectors including trade, investment, oil exploration and information technology and decided to explore new areas of cooperation. In their talks, External Affairs Minister Salman Khurshid and Venezuela's Minister of Popular Power for Foreign RelationsElias Jaua Milano decided to explore new areas of cooperation besides boosting trade and investment. Venezuela is India's largest trading partner in Latin America and supplies crude oil to India. The volume of bilateral trade between the two countries was $ 14.35 billion in 2012-13. "The entire gamut of bilateral relations besides various regional and multilateral issues were discussed in the meeting," Khurshid told reporters. India's exports to the country include chemicals, textiles and engineering products such as scooters, equipment and machinery. The Indian pharma industry has a significant presence in the country.
The main items of India's imports from Venezuela are crude oil, iron pellets and electrical cables. Milano said his country would like greater cooperation with India in oil exploration sector. ONGC Videsh Limited, Indian Oil Corporation and Oil India Ltd are part of the $ 20 billion Carabobo oil project in the Orinoco belt of Venezuela. The project is aimed at producing 400,000 barrels per day of oil (20 million tonnes) in four years. The Reliance Industries Ltd gets about 20 per cent of its oil needs from Venezuela. RIL currently imports about 300,000 bpd of oil from Venezuela for processing at its twin refineries at Jamangar in Gujarat. "We are eager to ensure India's energy security and would like to have more cooperation in oil exploration sector," Milano said.