ONGC Videsh Ltd wants to dip into payments Reliance Industries makes for importing crude oil from Venezuela to recover USD 421 million (about Rs 2,610 crore) that the Latin American nation owes to it.
OVL holds 40 per cent stake in the San Cristobal oil project in Venezuela.
It hasn’t received dividend on its investment in the project that is operated by Venezuelan national oil company PdVSA since 2009 and total outstanding as on March 31, 2014, was USD 421 million.
ADVERTISEMENT
To get back its dues, OVL first demanded staggered payments but Venezuela did not oblige, sources privy to the development said.
The firm has now proposed two options — either Venezuela offers it crude oil in lieu of the dues or adjustments are made with 300,000 to 400,000 barrels per day of crude oil being imported by RIL.
Sources said OVL wants a mechanism to be put in place wherein part of the proceeds for payment of crude oil exported from Venezuela to India could be maintained in Indian rupees.
ADVERTISEMENT
This, besides settling dues, could be used to pay for exports of other projects from India to Venezuela. This would encourage exports from India.