Deora visit: ONGC venture to be inked

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New Delhi: A joint venture agreement between PDVSA, the national oil company of Venezuela, and ONGC is scheduled to be signed on March 8 at Caracas, during the visit of Petroleum and Natural Gas Minister Murli Deora to Venezuela from March 7 to 8. The Government had approved a proposal to authorize ONGC Videsh, the overseas investment arm of ONGC, to form of a joint venture company with CVP / Petroleos De Venezuela S.A. (PDVSA), Venezuela, for development of San Cristobal field located in Orinoco oil belt, directly or through OVL's existing or new wholly-owned subsidiary. With the project, OVL will get an opportunity to obtain an equity ownership of 40 percent in one of the largest oil producing countries in partnership with the national oil company of Venezuela. The proposed agreement comes in the wake of a hydrocarbon cooperation agreement signed between the Government of India and the Government of Venezuela on March 5, 2005. The Petroleum Ministry has been making efforts to promote collaboration between the national oil companies of India and other countries including Venezuela to obtain participation in exploration production assets abroad.