Last Updated:
ONGC secured a US Treasury OFAC license to resume full operations in Venezuela, removing sanction-related hurdles and allowing potential expansion and new agreements.
People pass by in front of the Oil and Natural Gas Corporation Limited (ONGC) office in New Delhi. (Reuters file photo)
State-owned Oil and Natural Gas Corporation (ONGC) has secured a licence from the US Treasury’s Office of Foreign Assets Control (OFAC), allowing it to resume full operations in Venezuela after years of restricting activity due to sanctions-related risks.
A senior company official told PTI on Sunday that the US approval has removed a key hurdle for ONGC’s Venezuelan investments and given it “full freedom to work” on its projects.
“Now we have full freedom to work on the Venezuela project because earlier we were restricting our operations there because of the sanction-related risks. Those risks are behind us,” ONGC Director-Finance Anupam Agarwal said.
ONGC Eyes Higher Output
The licence could allow ONGC to expand production, enter new agreements and potentially take over operatorship of some projects from Venezuela’s state-run oil company PDVSA.
ONGC Videsh Ltd (OVL), the company’s overseas investment arm, holds a 40% stake in the San Cristobal oil project, with the remaining interest held by PDVSA. It also has an 11% stake in the under-development Carabobo project.
The OFAC approval will enable ONGC to manage the finances of its Venezuelan projects and could help the company recover more than $500 million in pending dividends.
ONGC is already in discussions with Venezuelan authorities and its joint-venture partners over both projects. Agarwal said the company expects new agreements and potentially a transfer of operatorship from PDVSA in the near term.
San Cristobal produced around 0.265 million tonnes of oil equivalent in FY26, which Agarwal said was only about a tenth of its production potential.
‘Very Bullish’ On Venezuela
With sanctions-related restrictions eased, ONGC plans to invest in its Venezuelan assets to raise production. The company is particularly focused on shallow, onshore fields, where it has relevant experience from operations in western India.
“We are very bullish for Venezuela,” Agarwal said.
Venezuela holds the world’s largest proven crude oil reserves, estimated by OPEC at around 303 billion barrels. However, years of underinvestment, sanctions and operational difficulties have kept much of its production potential underdeveloped.
Agarwal said Venezuela’s newly enacted petroleum law also provides fiscal incentives for resource development, potentially improving the investment environment.
The renewed push into Venezuela comes as India seeks to secure overseas oil assets and diversify its crude supply amid heightened geopolitical risks. For ONGC, greater operational control could offer an opportunity to help unlock some of the country’s vast underproduced oil resources.
(With inputs from PTI)
Key Questions Answered
Ask News18ONGC’s expanded role, following the US licence approval, could lead to increased oil production in Venezuela. The company now has the freedom to invest in projects, expand production, and potentially take over operatorship of some projects from PDVSA. ONGC can now invest in projects to raise oil production.
Ask News18About the Author
The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, …Read More
August 19, 2026, 11:49 PM IST
Read More
Source link
[ad_3]
