Reliance eyes Orinoco belt in deal with PdV

27 September 2012

Justin Jacobs, LONDON: India's Reliance Industries and Venezuela's PdV have signed energy cooperation agreements including a preliminary deal that could see Reliance spend billions of dollars in Venezuela's Orinoco heavy-oil belt. The agreements included a memorandum of understanding (MoU) for Reliance to join PdV in developing the Boyacá 4 heavy-oil project. It would be Reliance's first foray into heavy-oil development, though the company has been interested in heavy oil for a number of years. In 2010 Reliance put forward a $2 billion bid for Canadian oil-sands company Value Creation, but was outbid by BP. Negotiations over details of Reliance's role in the project, though, appear to be in the early stages and a number of similar MoU's between PdV and foreign companies have not been followed up by formal agreements. "We are going to review the development plan...

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