PdVSA signs crude oil supply deal with Reliance

by on September 26, 2012 3:02 am BST

PdVSA signs crude oil supply deal with Reliance


CARACAS — PdVSA, signed a 15 years crude supply contract with Reliance that will send as much as 400,000 bopd to the Asian country over the long term. The contract, inked by officials from both countries in Caracas, will begin with shipments of 300,000 bopd and increase over time, Venezuela’s Oil Minister Rafael Ramirez said.

P M S Prasad, executive vice president at Reliance, said the crude will feed India’s Jamnagar Refinery and will help the rapidly growing Asian economy meet its growing energy needs. He said the supply contract could run longer than 15 years.

Venezuela, which has been looking to diversify its oil exports to Asian economies, currently sends around 270,000 bopd to India, Mr. Ramirez said.

PdVSA said earlier this month that it plans to raise overall shipments to India to 518,000 bopd by 2018.

The latest supply contract will raise PdVSA’s Asia shipments to 820,000 bopd. Around 640,000 bopd go to China, of which more than 200,000 go toward repaying nearly $40 billion in loans granted by the Asian giant to President Hugo Chavez’s government.

During a signing ceremony on Tuesday, Mr. Ramirez said that the Indian energy company is also evaluating its participation in the Ayacucho and Boyaca blocs in Venezuela’s massive Orinoco heavy oil belt.

Dow Jones Newswires