America has once again done something that has put the world in tension. Attack on Venezuela and then President Nicolas Maduro Arrested by the US Army during a military operation. A video of him being taken to the detention center in New York is going viral. The impact of American control over Venezuelan Oil Sector and Donald Trump’s big claims will be seen on Crude Oil Price.
While this action of US has increased the tension of many countries including Russia, it can prove beneficial for India. According to the report, Venezuela With US control over oil, India’s pending dues of $1 billion can be cleared and production can also increase.
US control, good news for India
According to PTI report, analysts and industry sources believe that America Venezuela’s oil sector coming under the leadership, its acquisition or restructuring can prove to be of direct benefit to India. It said that this would potentially enable payment of long pending dues of about US $ 1 billion (about more than Rs 9000 crore). Not only this, after the control of America, there may be a rise in the production of Crude Oil in the sectors operated by India in this Latin American country which is affected by various sanctions.
It is noteworthy that amid the action on Venezuela, Donald Trump has said that US Oil Firms will enter Venezuela and invest billions of dollars to improve the deteriorated oil infrastructure there. According to Trump, ‘We are in the oil business and we know how oil companies become profitable.’
was a major importer of Venezuelan oil India
According to the report, India was once a major importer of Venezuelan Crude Oil. At one time, at its high level, more than 4 lakh barrels of oil was imported into the country every day. But the situation changed from the year 2020, when imports were banned due to the sanctions imposed by the US and the increasing threat of compliance risks.
This Indian company is a major oil producer
ONGC Videsh Limited (OVL), India’s leading offshore oil producer, jointly operates the San Cristobal oil sector in eastern Venezuela. Due to US Bans, there has been a huge decline in its operations and oil production since 2020. Due to all this, the stock available in the country is lying idle and the outstanding is stuck.
According to PTI, due to all these problems, the dividend of $536 million payable by Venezuela on OVL’s 40% stake in this project by 2014 is stuck. And after this, almost the same amount is still outstanding in the period till now. The special thing is that these dues could not be settled due to lack of audit permission.
Why was India’s hope awakened?
India’s hope of getting the outstanding payment of about 1 billion dollars is actually raised because with Donald Trump-led America taking control over Venezuelan oil, there is hope of resumption of oil exports from there in the global market. If this happens, ONGC Videsh Limited may get help in getting its dues. It was said that due to relaxation in the ban imposed by America, Venezuelan Oil can come to India again.
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