India and Venezuela have signed an oil
production deals worth about 1.45 billion US dollar to increase oil production.
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.
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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.
Venezuelan crisis
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.
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