Will ONGC Videsh Soon Resume Operations In Venezuela?

ONGC Videsh, the overseas arm of Oil and Natural Gas Corporation Ltd, expects to restart operations in Venezuela, after the United States look at stabiising the country's energy sector.

India's flagship energy major awaits formal approvals after Reliance Industries Ltd received a general license from United States to purchase Venezuelan oil, siganlling an ease in US sanction on Venezuela.  

“On Venezuela, we understand that the US government is progressively lifting sanctions or is in the process of liberalising the trade from Venezuela and maybe allow other countries and companies also to start operations over there. We are awaiting those instructions as such,” ONGC said. “The movement is in the positive direction, and we are hopeful that we should be in a position to restart our operations once, the on ground and uh, US sanctions get lifted,” the company noted.

ONGC has stakes in two Venezuelan oil fields, 40 percent in Sancristobal and 11 percent in Carabobo.

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Due to the imposition of US sanctions, the energy company has been unable to receive the income for the past few years and has nearly $600 million of dividends stuck in the South American nation.

These assets have remained underutilised for years due to sanctions, underinvestment, and payment constraints, with dividends and receivables effectively stranded.

In 2024, ONGC Videsh sought a "specific licence" to operate in Venezuela from the US department of treasury.

The wholly-owned subsidiary is also hopeful on receiving its dividends in the Sakhalin-1 project, Russia with aid from both central administration and Russian government.

In FY27, ONGC is targeting production of 42.5 million tonnes of oil equivalent including 21 million tonnes of oil output and 21.5 MT of gas. The company has charted out a Rs 32,000-33,000 crore capex plan for the coming fiscal.