US Move on Venezuela Oil Could Help India Recover Nearly $1 Billion in Stuck Dues

A potential US-led restructuring of Venezuela’s oil sector could unlock close to $1 billion in long-pending payments owed to Indian companies, while also reopening access to crude supplies that were cut off following international sanctions, according to analysts and industry sources.

India’s state-run overseas arm ONGC Videsh Ltd (OVL) is among the key beneficiaries if sanctions ease. The firm's long-stalled dividend payments and suppressed oil production are expected to revive under a new operational framework.

India’s Exposure to Venezuelan Oil Assets

India was once one of the largest buyers of Venezuelan crude, importing over 400,000 barrels per day at peak levels before US sanctions halted purchases in 2020. Several Indian refiners were structurally equipped to process Venezuela’s heavy crude grades, making the country a natural market.

OVL jointly operates the San Cristobal oilfield in eastern Venezuela. The production has dropped sharply due to restrictions on equipment, services, and technology under sanctions.

Also read: US Senator Claims Indian Diplomat Asked for Tariff Concessions

Nearly $1 Billion In Dues Stuck

Venezuela has not paid OVL around $536 million in dividends linked to its 40% stake in San Cristobal for the period up to 2014. A similar amount remains unpaid for subsequent years, as audit approvals were not granted, thus freezing settlement.

Industry officials say these dues could be recovered once exports resume and revenue flows normalise under a revised governance structure.

Production Revival Hinges On Sanctions Easing 

With sanctions lifted or softened, OVL could redeploy drilling rigs and equipment, including assets currently used in ONGC’s domestic fields, to restore production at San Cristobal. Officials estimate output could rise from the current 5,000–10,000 barrels per day to as much as 80,000–100,000 barrels per day.

India also holds stakes in the Carabobo-1 heavy oil block, where OVL owns 11%, while Indian Oil Corporation and Oil India hold smaller interests. 

What US Involvement Could Change? 

Analysts expect Venezuela’s national oil company PdVSA to undergo restructuring under US oversight, potentially involving partnerships with global energy firms. Existing international stakeholders, including Indian companies, will likely retain their interests under any revised ownership structure.

A US-backed overhaul could bring capital, technology, and operational discipline. This could lift production levels that have collapsed over the past decade. 

Implications For India's Crude Strategy

For India, renewed Venezuelan exports would offer an alternative supply source at a time when refiners are diversifying away from concentrated dependencies. Indian refiners have the complexity required to process Venezuelan heavy crude efficiently, thus making a restart of trade commercially viable.

Energy analysts note that restored Venezuelan output could also support global price stability, while strengthening India’s negotiating position with other crude suppliers.

Also read: Venezuela's Oil Supply To Rise In Years Ahead And Depress Prices: Analys