Indian oil companies plan to invest more in Venezuela

Oil companies in India, the fourth largest oil importer in the world, plan to increase their investments in Venezuela to extract higher volumes, said on Wednesday the Secretary of Industry of India.

An Indian consortium led by ONGC Videsh, the foreign investment arm of ONGC oil firm, plans to invest USD 2.2 billion in a project in Carabobo oil field, and additional USD 500 million in the San Cristóbal field, Jyotiraditya Scindia said in a statement.
India, which buys about 80 percent of its oil needs abroad, has been looking for oil and gas assets to meet its growing domestic demand and its high refining capacity.

The state-owned ONGC and Oil India have identified potential acquisitions in the US, Canada, South America, Australia and some countries in Africa. ONGC Videsh has already invested USD 350 million in San Cristóbal oil field in Venezuela.

India and Venezuela had agreed to increase their ties in the energy sector through the joint construction of refineries in both countries and the expansion of shipping lines, Reuters reported.

India has invited Venezuela to join the project of Indian Oil Corp refinery in the eastern state of Orissa.

The state-run oil firm GAIL India is also seeking opportunities in the natural gas sector in Venezuela, while Bharat Petroleum Corp. refinery is interested in exporting "base oil" to the South American country, Scindia said.