OVL to buy stake in Venezuela oil field

NEW DELHI, Jan. 23 (UPI) -- A top group of Indian officials has asked the government to allow ONGC Videsh Ltd. to buy a stake in a Venezuelan oil field.

An empowered committee of secretaries, headed by Petroleum Secretary M.S. Srinivasan, recommended allowing OVL, the overseas arm of state-run Oil and Natural Gas Corp., to acquire a stake in Venezuela's San Cristobal oil field. The recommendation will now be taken to the Cabinet Committee on Economic Affairs, an official of the Ministry of Petroleum and Natural Gas said.

OVL was looking at acquiring a 40-percent stake in the Venezuelan oil field.

According to ministry officials, an OVL team is in Venezuela to negotiate the deal and reach an agreement. Venezuela's state-run PDVSA will hold the remaining stake through a subsidiary.

Indications are that ONGC may be required to approve a loan of close to $355 million for the project.

San Cristobal produced about 24,000 barrels of oil per day.