Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.

  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list

India set to strike oil barter deal with Venezuela

Natural Gas | Oil

Oil & Gas 2018 Outlook: Asia


Platts Market Data – Oil

Capital Markets | Commodities | Oil | Crude Oil | Refined Products | Fuel Oil | Gasoline | Jet Fuel | Naphtha | Marine Fuels | Equities | Financial Services | Banking | Non-banks | Private Markets

North American Crude Oil Summit, 3rd annual


Crude prices edge higher as producers announce cuts

India set to strike oil barter deal with Venezuela

New Delhi — India will strike a barter deal with Venezuela to settle past dues of $530-$600 million payable for its oil equity in the Latin American nation, a senior official at state-owned Oil and Natural Gas Corp said Thursday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

ONGC Videsh Limited, the overseas arm of upstream major ONGC, has a 40% stake in the San Cristobal oil field in Venezuela. The dues included its accumulated share of oil sales.

"They [Venezuela's PDVSA] would be giving us crude every month," ONGC chairman and managing director D K Sarraf, who is also chairman of OVL, said after releasing ONGC's results for the second fiscal quarter (July-September).

In July, Indian oil minister Dharmendra Pradhan raised the issue of barter deal with his Venezuelan counterpart Eulogio del Pino during his visit to the Indian capital.

Article Continues below...

"Based on the discussions three months ago with the Venezuelan team, an agreement is being finalized," Sarraf said, and hoped that the barter deal would be finalized "very soon."

In 2008, OVL invested around $190 million in the project where PDVSA holds a 60% stake.

Sarraf declined to give specific details related to the monthly quantity of Venezuelan crude to be imported as part of the deal and the timeline to square off the outstanding dues by saying minute details were still being worked out.

"By utilizing those quantity [to be finalized], we would be able to recover the debts," Sarraf said, adding the squaring off the dues would take couple of years.

In fiscal year 2015-16 (April-March), India imported 23.6 million mt of crude from Venezuela, accounting for 12% of the country's crude imports.

OVL and state-run Indian Oil Corp. also have stakes in Venezuela's Carabobo-1 project, located around 440 kilometers southeast of Caracas. Venezuela was the third-largest crude supplier to India in the January-May period.

But the share has fallen over that period as the economic situation deteriorated in the Latin American country where inflation touched alarming levels.

Latest data from the US Energy Information Administration showed Venezuela's third-quarter 2016 crude production dropping 12% year on year to 2.11 million b/d.

Analysts said the prospects for a default in 2017 by PDVSA would depend on how much flexibility the troubled state-owned oil company negotiates with bond holders in a multi-billion dollar debt swap closing in October.

Venezuela's oil exports have been falling slower than its production because of a sharp drop in domestic demand and the country's dependence on imported diluents and oil products for the domestic market.

--Ratnajyoti Dutta,
--Edited by Irene Tang,