State-run oil company Petróleos de Venezuela, S.A. (PDVSA) and India’s Reliance Industries Limited (RIL), last week signed two agreements to boost extra-heavy crude oil production in Venezuela’s Orinoco Oil Belt (FPO) and sell up to 400,000 barrels per day (bpd) to the country.
Rafael Ramírez, the People’s Minister for Petroleum and Mining and President of PDVSA, said that the first official document signed with the Indian company was a Memorandum of Understanding (MoU) that will allow Reliance to participate in crude oil exploration and production activities in the Ayacucho and Boyacá 4 blocks in the FPO.
With the second document, PDVSA agreed to supply Venezuelan heavy crude oil to the Asian country under a 15-year contract. Venezuela will send Reliance between 300,000 and 400,000 barrels per day.
“This agreement ensures the sale of our oil to countries th
Ramírez highlighted the technical assistance that Venezuela will receive from the Indian company, which has expertise in the construction of refineries and has a refining capacity of 1.5 million barrels per day, of which 50% is made up of heavy crude oil. Reliance will also provide training in oil fields and the provision of technology for refining Venezuelan heavy crude.
Venezuela currently sends 270,000 bpd to India; India’s oil consumption currently amounts to 4.2 million barrels of crude oil per day.