India’s Jindal Abandons Oil Venture With Venezuela’s PDVSA
(Bloomberg) -- Jindal Power Ltd. is walking away from a venture that would have operated an oil-processing facility for Venezuela’s state-controlled crude producer, according to people familiar with the matter.
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India’s Jindal is exiting the deal under which it would have overseen one of Petroleos de Venezuela’s key installations for producing and processing heavy-crude oil for export, said the people, who asked not to be named discussing non-public information.
Despite the deal’s collapse, Jindal continues to operate Venezuela’s largest iron-ore complex, a project it has led since late 2023.
The unraveling upgrader agreement is illustrative of PDVSA’s difficulties finding deep-pocketed partners to help revive Venezuela’s crude industry amid domestic political turmoil and crippling US sanctions.
Jindal didn’t respond to requests for comment. A spokesperson for PDVSA declined to comment.
Jindal agreed in May to partner with PDVSA in the Petrocedeno venture located in the the oil-rich Orinoco Belt. For Jindal, the $300 million plan to renovate upgrading equipment and make other improvements represented its first foray into the oil sector.
But the companies failed to reach a final agreement on control of the operation, the people said. Petrocedeno’s oil fields reached a maximum output of 160,000 barrels a day in the mid-2000s.
--With assistance from Lou Del Bello.
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