The Cabinet Committee on Economic Affairs (CCEA) on Friday approved ONGC Videsh Limited (OVL) and its partners' investment of $2.181 billion in a giant oilfield in Venezuela bringing the country nearly 3.6 million tonnes a year of crude oil.

Under the arrangement, OVL will invest $1.333 billion between 2010 and 2015 as its share of spending in the four lakh barrels per day (bpd) Carabobo-1 project. Indian Oil Corporation (IOC) and Oil India Limited will invest $454 million each in the project.

The CCEA approved the investment by Indian firms which together hold 18 per cent stake in the Carabobo-1 project, Union Home Minister P. Chidambaram told reporters here after the Cabinet meeting.

The Carabobo-1 project of the Orinoco extra-heavy oil belt of Venezuela would involve a total investment of close to $21 billion over 25 years. The project is expected to go on stream in three years.

Mr. Chidambaram said OVL's investment was made up of $302 million in equity, $289 million in loan of PdV, $454 million as contribution to Mixed Company as debt and $289 million as signature bonus.

Keywords: CCEAONGCOVLVenezuela

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