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🇻🇪 Venezuela /Economy & Trade

Indian oil giant ONGC secures U.S. license to boost Venezuela production

From El Nacional · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • India's state-owned oil giant ONGC has secured a U.S. license to resume full operations in Venezuela.
  • The license from the U.S. Treasury Department's OFAC removes risks associated with previous sanctions, allowing ONGC Videsh to work freely on its Venezuelan projects.
  • ONGC Videsh holds stakes in two projects in Venezuela's Orinoco Belt, aiming to increase production despite past delays and sanctions.

India's largest state-owned oil company, Oil and Natural Gas Corporation Limited (ONGC), is set to fully resume its operations in Venezuela after obtaining a crucial license from the United States government. This development allows the New Delhi-based firm, which produces a significant portion of India's oil and natural gas, to move forward with its Venezuelan ventures.

ONGC Videsh, the international arm of ONGC, has had a modest presence in Venezuela for over 15 years, primarily focused on projects within the Orinoco Oil Belt. These operations have faced numerous hurdles, including U.S. sanctions on Venezuela's oil industry and outstanding debts from the Venezuelan government.

According to specialized media, ONGC Videsh has received a license from the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC). Anupam Agarwal, CFO of ONGC Videsh, stated that the company now has "full freedom to work on the Venezuelan project" as the risks related to sanctions have been eliminated.

ONGC Videsh is involved in two projects in the Orinoco Belt: San Cristóbal, where it holds a 40% stake in partnership with Venezuela's PDVSA, and Carabobo I, with a 40% share alongside Spain's Repsol. The company had previously signed an agreement in 2017 to revitalize the San Cristóbal project, aiming to recover deferred dividends. San Cristóbal currently produces around 18,000 barrels per day, with plans to increase output to 27,000 barrels per day through water injection techniques.

Now we have full freedom to work on the Venezuelan project, as we previously restricted our operations there due to risks related to sanctions. Those risks are now behind us.

— Anupam AgarwalThe CFO of ONGC Videsh explains the significance of the U.S. license for resuming operations in Venezuela.
DistantNews Editorial

Originally published by El Nacional in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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