Mumbai: ONGC Videsh Limited, the overseas arm of state-owned ONGC along with its consortium is planning to increase its investments in Venezuela to $3 billion, making it one of the biggest investments of Indian state-owned firms overseas.

"OVL with $ 350 million of investments wants to invest another $500 million in the San Cristobel oil field. In addition, ONGC Videsh with an Indian consortium proposes to invest US$ 2.2 billion in the Carobobo project. Thereby enhancing its investments over $3 biliion in Venezuela," said Jyotiraditya M Scindia, state minister for commerce and industry in a government statement after leading a business delegation in Venezuela.

Besides, the Indian state-owned firms are also looking at picking a minority stake in a green field refinery project in Venezuela, which will be majority owned by Venezuela state-owned firm PDVSA. Similarly, PDVSA has been offered to buy a stake in Indian Oil Corporations (IOCL) 15 mmtpa green filed refinery in Orissa, which is being set up for $5 billion.

Indian public sector oil companies want to enter into agreements with Venezuelan firms on a spot basis. GAIL is exploring opportunities in the natural gas value chain in Venezuela while BPCL is exploring opportunities to export base oil to Venezuela and its marketing. Engineers India Limited (EIL) is looking at providing its design and engineering services in the hydrocarbon sector.

India and Venezuela is also looking at building shipping lines between India and Venezuela and finalization of the double taxation avoidance agreement (DTAA) between India and Venezuela.