OIL INDIA SIGNS AGREEMENT WITH PDVSA FOR EXPLOITATION OF HEAVY OIL IN RAJASTHAN

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Oil India Limited (OIL) signed an Agreement with Petroleos de Venezuela, S.A. (PDVSA), Intevep here today for carrying out consultancy service/technical collaboration including detailed geoscientific and reservoir engineering studies of Baghewala oilfield in Rajasthan. This will lead to pilot plant experiment for exploitation of heavy oil and bitumen with subsequent development plan and utilisation options.

The Agreement was signed in the presence of Minister of Petroleum & Natural Gas, Shri Ram Naik and Minister of State for Petroleum & Natural Gas and Parliamentary Affairs, Shri Santosh Kumar Gangwar. Mr. Walter Marquez, Ambassador of Venezuela in India and Shri R.K. Dutta, Chairman & Managing Director, OIL signed the Agreement on behalf of OIL. The signing ceremony was attended by a number of dignitaries.

Heavy oil and bitumen were discovered by OIL in 1991. OIL has been on the look out for suitable technology since then. The heavy oil block was also offered under Joint Venture Exploration Programme in 1995 but the Production Sharing Contract could not be finalised. In 1999, the heavy oil exploitation was included in the agenda of Indo-Venezuelan Joint Working Group for Hydrocarbons, which was also taken up in the subsequent rounds of meeting. PDVSA, the national oil company of Venezuela and the largest producer of heavy oil in OPEC, was requested to provide technical know-how through its consulting branch PDVSA Intevep. After discussion between OIL and PDVSA Officials and subsequent field visits, PDVSA offered to provide technical assistance for exploitation of heavy oil and bitumen.

During his recent visit to World Petroleum Congress at Rio-de-Janeiro, Petroleum Minister Shri Naik had the opportunity to meet Mr. Rafael Ramirez, Minister of Energy, Venezuela. Among other things, Shri Naik also requested him for collaboration in production of heavy oil. As a result, the Agreement was finalised expeditiously.

PDVSA will carry out the job in two phases. In the first phase, PDVSA will carry out detailed reservoir and geoscientific studies for selection of suitable recovery technique and plant design. In the second phase, PDVSA will be associated during the implementation of pilot scale production, which will be followed by preparation of development plan and utilisation options.