MOSCOW (MRC) -- India’s Reliance Industries is looking to acquire a stake in Venezuela’s Carabobo heavy oil field in a potential farm-in deal whereby it would take over the stake of Petronas, according to Upstreamonline.
The privately-owned energy giant, controlled by billionaire Mukesh Ambani, operates the world's biggest refining complex in western India and is hunting for cheaper, heavier crude to feed its refineries, which account for the lion’s share of its revenue.
Reliance signed a 15-year deal to buy up to 400,000 barrels per day of heavy oil from Venezuela’s state-run oil company PDVSA in 2012 and now is apparently looking to participate in the Petrocarabobo joint venture that operates the Carabobo-1 heavy oil project in the Orinoco belt.
The project plans to invest around USD20 billion over 25 years and involves building a 200,000 barrel-per-day upgrader to convert heavy crude into light crude oil.
Malaysia's Petronas said in September it is exiting the Petrocarabobo venture after what sources said were disagreements with Venezuelan authorities and PDVSA.
PDVSA has a 60% stake in the venture while Repsol, Petronas and Indian state-owned Oil & Natural Gas Corporation each own 11%, with Oil India and India Oil Corporation holding 3.5% apiece.
Reliance is also examining a possible entry into the Ayacucho-8 block in a joint venture with PDVSA, Bam said.
Reliance is also looking at exploration opportunities in Mexico after recent regulatory changes there but has so far not committed any investments in that country, he said. Reliance currently buys 60,000 bpd of oil from Mexico.
As MRC reported earlier, Reliance Industries plans to expand capacity at its refineries in the western state of Gujarat. In 2012, the company unveiled an USD18 billion investment plan for India over the next five years.
Reliance Industries is one of the world"s largest producers of polymers. The company's polymer production in 2010-11 (polypropylene, polyethylene and polyvinyl chloride) made 4,094 kilo tonnes.
MRC