India, Venezuela sign deals to increase oil production

Posted on:05 Nov 2016 18:01:19

India, Venezuela sign deals to increase oil production
05 November 2016 Current Affairs: India and Venezuela have signed an oil production deals worth about 1.45 billion US dollar to increase oil production. The agreement was signed between Oil and Natural Gas Corporation (ONGC), Venezeulas Petroleos de Venezuela SA (PDVSA), and Venezuela’s consortium Delta Finance BVin Caracas. The Indo-Venezuelan partnership created in 2009 is expected to double the daily oil production of San Cristobal field from 20,000 to 40,000 barrels of oil.

The agreement comes amid a severe economic crisis in Venezuela. It is seen as a way to boost oil production, pay off debts, obtain funds from other foreign partners, and increase the country’s oil income.

Venezuela’s economy relies on oil exports and it accounts for half of the Venezuelan government’s revenues. Recently, it has been severely hit by a drastic fall in oil prices and resulted in the Venezuela’s economic crisis. The inflation rate in Venezuela is out of control leading to hyperinflation like condition resulting in shortages of goods and essential commodities. The inflation rate of Venezuela is highest in the world which is expected to reach 475% by the end of 2016.


Subscribe to Current Affairs

Enter your email to get daily current affairs

Current Affairs July 2017

25 JULY
NEWS
24 JULY
NEWS
22 JULY
NEWS
21 JULY
NEWS

Current Affairs June 2017

30 JUNE
NEWS
29 JUNE
NEWS
28 JUNE
NEWS
27 JUNE
NEWS

Current Affairs May 2017

31 MAY
NEWS
30 MAY
NEWS
29 MAY
NEWS
27 MAY
NEWS