Cabinet approves 2.18 billion dollars investment in Venezuela oil block

New Delhi, March 19 : The cabinet Friday approved an investment of 2.18 billion dollars (Rupees 10,900 crore) by three state-run companies - ONGC Videsh, Indian Oil Corporation and Oil India - in Venezuela's Carbobo oil block.

"The three companies, which together have an 18 percent equity interest in the project were awarded the block in consortium with Spain's Repsol YPF SA (REP) and Malaysia's Petroliam Nasional Bhd," Home Minister P Chidambaram told reporters after a meeting of the Cabinet Committee on Economic Affairs (CCEA).

Venezuala's state-run Petroleos de Venezuela SA holds the remaining stake in the block.

ONGC Videsh is the overseas investment arm of Oil and Natural Gas Corporation (ONGC).

The CCEA meeting, which was chaired by Prime Minister Manmohan Singh, also approved the award of 33 blocks for oil and gas exploration under the New Exploration Licensing Policy (NELP).

"This will accelerate exploration and production activities with hydro-carbon reserve accretion and help increase the energy security of the country," Chidambaram said.

The government had received 76 bids for 36 of the 70 oil and gas blocks offered in the 8th round of auction. Three blocks were not awarded.