Cabinet committee on economic affairs (CCEA) may approve this week proposed investment of about $2 billion by three state-run oil companies in Venezuelan oil assets this week.

State-run oil companies, ONGC Videsh (OVL), Indian Oil Corporation (IOC) and Oil India (OIL) emer-ged successful bidders for developing Carabobo-1 blo-ck in Venezuela’s Orinoco belt last month.

A consortium of three Indian companies bagged the deal with Spain’s Repsol and Mala-ysia’s Petroliam Nasional Berhad (Petronas).

We want to facilitate fast investment by Indian oil PSUs. So, we have sent the proposal to CCEA that sho-uld come up for approval this week itself, said a petroleum ministry official.

OVL, Repsol and Petronas will have 11 per cent stake each in the asset. IOC and OIL will together hold seven per cent in the prolific energy block. Petroleos de Venezuela will retain controlling stake of 60 per cent.

The consortium partners have estimated an initial investment of about $9 billion. Indian players will have to fork out close to $2 billion initially. Later, these companies may have to increase their investments to $4 billion as total spending over next 25 years is estimated at $19 billion.

The multi-national consortium will have to pay $1.05 billion to Venezuela government towards signing up the oil well’s ownership and exploration. Seven blocks in the Carabobo area, with combined oil in place, is estimated at around 128 billion barrels. The blocks are divided into three projects.

OVL steeped into an exploration agreement with Angola's Sonangol in January. According to the deal, OVL will jointly bid in the next exploration auction in Angola. Moreover, an OVL-led consortium agreed to develop gas fields in December last year.