Thursday, January 12 2006 17:10 Hrs (IST) - World Time -

New Delhi: Government today (Jan 12, 2006) approved the agreement with Venezuela on cooperation in hydrocarbon sector to strengthen supply security of oil for the growing Indian economy.

Union cabinet today gave its ex-post facto approval for the agreement signed with Venezuela in the hydrocarbon sector, Information and Broadcasting Minister Priyaranjan Dasmunshi, told newspersons here.

This is an umbrella agreement aimed at establishing a general framework for implementing actions of cooperation of mutual interest in the hydrocarbon sector, Dasmunshi said.

The cabinet also gave its approval for authorising any non-substantive changes suggested by the Venezuela side as also decision on the level at which the Agreement was signed with the approval of Petroleum and Natural Gas in consultation with the Ministry of External Affairs.

Venezuela is one of the top 10 crude oil producers with largest proven reserves in the Western Hemisphere. Two-thirds of India's oil demand is met through imports from oil exporting countries and the country's dependence on oil imports is estimated to reach 85 per cent by 2025.

"In order to strengthen supply of security of oil for the growing Indian economy, it has become necessary to establish long-term frameworks of cooperation with oil producing countries", he said.

Steps towards fomenting mutual cooperation between India and Venezuela in the hydrocarbon sector have been initiated much earlier in 1995.

The first meeting of the Indo-Venezuelan Joint Working Group for Cooperation in Hydrocarbon sector was held in Caracas in 1999.