Oil India Ltd signs pact with Venezuelan firm

Oil India Ltd on Friday signed a pact with a Venezuelan firm which could provide technology transfer for production of cheap power fuel orim...

Oil India Ltd on Friday signed a pact with a Venezuelan firm which could provide technology transfer for production of cheap power fuel orimulsion in the country.

OIL and Petroleos de Venezuela SA (PDVSA) Intevep have entered into an agreement to exploit the bitumen and heavy oil from Baghewala oilfield in Rajasthan. PDVSA will provide consultancy and technical collaboration through a pilot plant to bring the highly viscous fuel to the surface.

If the reserves prove to be sufficient for exploitation, PDVSA will provide the process and handling technique for orimulsion production, said OIL’s director (exploration and development) S.K. Patra.

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Orimulsion—a mix of bitumen and water—is widely used in Venezuela for power generation but environmentalists have opposed it because of its pollution emmission. But of late, it has gained acceptance in countries such as China and Singapore because it is cheap and the emissions can be cleaned through scrubbers.

Patra said current estimates showed reserves of 35 million tonnes of bitumen and 12.3 million tonnes of heavy oil in the Baghevala, Tavriwala and Kaleravala fields. But recent studies by London’s Exploration Consultant Ltd had pegged the reserves at 100 million tonnes, he added.