India, Venezuela Sign Energy Pact.

There goes Exxon's oil. Wave, Exxon.

India has signed a five-year, $400m joint venture with Venezuela to drill for oil and gas in Venezuela's south-eastern Orinoco region, officials say.

The state-owned Petroleos de Venezuela (PDVSA) will hold a 60% stake, and India's Oil and Natural Gas Corporation (ONGC) will control the remaining 40%.

The ONGC will invest $450m in the project.

Venezuela is Latin America's leading oil producer, with an estimated 100 billion barrels of crude oil reserves.

The venture is likely to double Orinoco's oil production to 60,000 barrels a day.

'First step'

Venezuelan officials say that the deal is expected that production will start within three years, and that the project will yield 232 million barrels of crude over the next 25 years.

"It's the first association agreement between the two countries," said Venezuelan Oil and Energy Minister Rafael Ramirez, adding that it was "a first step" towards further energy cooperation.