ONGC [Get Quote] Videsh Ltd, the overseas investment arm of Oil and Natural Gas Corporation (ONGC), has signed a joint venture agreement with Petroleos de Venezuela S.A. (PdVSA) to take 40 per cent stake in the San Cristobal oilfield in Venezuela.

OVL signed the deal at Caracus on Tuesday with PdVSA, which will hold the remaining 60 per cent. The agreement was signed by OVL Managing Director R S Butola and Eleogao Del Pino of PDVSA during the historic visit of India's Petroleum Minister Murli Deora to the Latin American nation.

Deora is the first Oil Minister from India to visit Venezuela. Under the agreement, OVL and PdVSA will develop the field from its current production level of 20,000 barrels per day to 40,000 barrels per day, company officials said.

OVL will make a total investment of $ 355.738 million comprising signature bonus of $ 173.1 million for the stake.

Besides, ONGC would also be required to sanction a loan of $ 355.74 million for the project that covers 160.16 square kilometers and is located in Junin in the Orinoco Heavy Oil belt of Venezuela.

The production from San Cristobal field started in October, 1981. Till date 44 wells have been drilled, of which 24 are active. The field is producing about 24,000 barrels of oil per day.

Ultimate recoverable reserves in the project area have been estimated by a joint team of ONGC and PDVSA at 232.38 million barrels that can yield up to 100,000 barrels of oil per day.