Oil Industry Venzuela to Supply Crude Oil for the Indian Economy

Editor: Dominik Stephan

Venezuela shall help to still India's increasing hunger for crude oil: Both countries are negotiating a supply agreement in the hydrocarbons sector...

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(Picture: PROCESS)

New Delhi/India – His Excellency, Minister of Energy and Mines of the Bolivarian Republic of Venezuela, , Mr Rafael Ramirez visited India for discussions with his counterpart, Minister for Petroleum and Natural Gas, Government of India, Dr. M. Veerappa Moily. In the meeting, the two Ministers reviewed on-going cooperation in the hydrocarbons sector.

It was recognized that Venezuela and India have shared a very robust relationship in the hydrocarbon sector ever since the visit of former President of Venezuela, Mr Hugo Chavez, to India in 2005. Minister Ramirez appreciated participation by Indian companies in the upstream exploration and production sector and also the companies that were major off takers of Venezuelan crude oil He expressed that Indian oil and gas companies were very well accepted in Venezuela and encouraged the Indian oil and gas companies to scale up their participation in the prolific Venezuelan oil and gas sector.

India Seeks Long Term Tie-Up for Crude Oil Supply from Venezuela

The Indian side expressed difficulties faced by oil companies in terms of registration of refinery, finalization of pricing formulae and signing of term contracts for import of crude oil from Venezuela. The Indian side also highlighted difficulties faced by Indian companies working in the Venezuelan E&P sector in the joint venture mode with regard to delayed payment of dividend to the JV partners. The Venezuelan side noted the difficulties and assured to address the concerns raised.

Minister Ramirez extended invitation to the Indian oil and gas companies for participation in the oil and gas meet scheduled to be held in Venezuela from 7th to 9th October, 2013. Minister Ramirez also assured audience to the Indian companies during their visit to Venezuela to discuss all issues in detail to arrive at mutually acceptable solutions.

India's Increasing Appetite for Crude Oil

Minister Moily highlighted the increasing appetite of crude oil of Indian refineries and requested for long term tie up for supply of crude oil from Venezuela. Upon request from Minister Moily for enhanced participation by a joint venture of Indian public and private sector oil and gas companies in the upstream oil and gas sector of Venezuela, Minister Ramirez welcomed the suggestion and agreed to carry forward this initiative.

Both sides agreed to finalizing a comprehensive package for collaboration not only in the oil and gas sector but also for participation by Indian companies in providing expertise for development of infrastructure and technology, as well as boosting trade in goods and services between the two countries.e

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