Date:17/01/2006 URL: http://www.thehindubusinessline.com/2006/01/17/stories/2006011702430300.htm

Back Cabinet nod for India-Venezuela pact in hydrocarbon sector

Our Bureau

Venezuela is among the top 10 crude oil producers in the world and holds among the largest proven reserves in the Western Hemisphere.

New Delhi , Jan. 16

THE Union Cabinet has given an ex-post facto approval for the agreement signed between India and Venezuela on cooperation in the hydrocarbon sector.

The Cabinet also gave its approval for authorising any non-substantive changes suggested by the Venezuelan side, as also decisions on the level at which the agreement was signed, made with the approval of Minister of Petroleum & Natural Gas in consultation with the Ministry of External Affairs, the Parliamentary Affairs Minister, Mr Priyaranjan Dasmunsi, said.

Briefing presspersons, Mr Dasmunsi said this is an umbrella agreement aimed at establishing a general framework for implementing actions of cooperation and mutual interest in the hydrocarbon sector.

"Steps towards nourishing mutual cooperation between India and Venezuela in the hydrocarbon sector have been initiated as far back as 1995. The efforts culminated in the establishment of Indo-Venezuelan Joint Working Group for cooperation in hydrocarbon sector and its first meeting in Caracas in 1999," he said.

Venezuela is among the top 10 crude oil producers in the world and holds among the largest proven reserves in the Western Hemisphere. The economy of Venezuela is oil-dependent, since oil accounts for roughly three-quarters of its total exports, about half of the Government revenues.