Home / Business and Economy / US greenlights ONGC's Venezuela oil operations
US greenlights ONGC's Venezuela oil operations
16 Aug
Summary
- US Treasury granted ONGC Videsh Ltd a license to operate fully in Venezuela.
- The approval allows ONGC to potentially recover $500-$600 million in pending dividends.
- ONGC plans to double oil production at San Cristóbal to 30,000 barrels daily within a year.
State-owned ONGC's overseas arm, ONGC Videsh Ltd (OVL), can now resume full operations in Venezuela following a license from the US Treasury's Office of Foreign Assets Control (OFAC).
This development removes a significant obstacle related to US sanctions, providing OVL greater flexibility. The company anticipates recovering between $500 million and $600 million in pending dividends previously tied up by sanctions.
OVL currently holds stakes in Venezuela's San Cristóbal and Carabobo-1 projects. The company plans to invest in the San Cristóbal field, aiming to increase its daily oil production from 12,000-15,000 barrels to 30,000 barrels within one year.
ONGC's director of finance noted the operational and geological compatibility of Venezuelan fields with ONGC's domestic expertise. This renewed focus aligns with India's strategy to diversify crude oil sources amid global energy market uncertainties.
