OVL may buy 49% stake in Venezuelan field

ONGC Videsh, the foreign arm of Oil and Natural Gas Corporation, is in talks with Venezuelan state oil company Petroleos de Venezuela S.A for a stake in the Tomoporo oilfield containing about one billion barrels of recoverable light crude reserves.

"Ranbir Singh Butola, managing director of OVL will be visiting Venezuela this week for negotiating a deal," an official said.

PDVSA is planning to increase output from the Tomoporo oilfield, one of the country's largest, from 90,000 barrels per day to 1,30,000 barrels per day, and is considering giving 49 per cent stake to a strategic investor.

Global oil majors including Total, Statoil, Royal Dutch/Shell, Repsol,  ExxonMobil and ChevronTexaco are also believed to be keen on partnering PDVSA in the project.

Also on OVL radar is Venezuela's new bidding for offshore natural gas licences, the official said.  Five offshore blocks are up for grabs in the Gulf of Venezuela and one off the coast of Falcon state in the first phase of the Rafael Urdaneta project.

PDVSA will retain the option of taking 35 per cent stake in projects that go commercial.