India's PSU Energy Major Oil and Natural Gas Corporation (ONGC) has informed that the company’s arm will sign an agreement on April 8 to buy 40% stake in the San Cristobal oilfield in Venezuela for about $ 450 million.

Venezuela, which is the only member in the OPEC from Latin America, is one of the top four oil producing countries in the world.

The acquisition will be carried out by the company's overseas arm, ONGC Videsh Ltd (OVL), which will sign the agreement with Petroleos de Venezuela S.A. (PdVDA).

PdVDA holds remaining 60% stake in the block. The block has estimated oil and gas reserves of 250 million tonnes

The Union Cabinet has recently given approval for the investment based on the recommendations made by the Empowered Committee of Secretaries. It has authorized OVL to form a joint venture company with the Venezuelan counterpart for the development of the field.

It is expected that over the next three years, we will start commercial production from the field, said Petroleum Secretary, Mr. M.S. Srinivasan.

In 2006, OVL acquired blocks/ participating interest in Vietnam, Cuba, Nigeria, Brazil and Libya. Besides, ONGC-Mittal joint venture acquired interest in a block in Syria.