Oil and Natural Gas Corporation’s (NSE: ONGC) overseas arm, ONGC Videsh Ltd, has expressed strong optimism about resuming its long-stalled operations in Venezuela as U.S. sanctions continue to loosen.
The Indian state-run energy giant holds a 40% stake in the San Cristobal oil field and an 11% stake in the Carabobo project in Venezuela.
U.S. sanctions have prevented ONGC from receiving income from these assets for several years, leaving approximately $600 million in dividends frozen inside Venezuela.
The company is now awaiting formal approval from the U.S. Office of Foreign Assets Control to resume operational control of both Venezuelan fields.
“On Venezuela, we understand that the U.S. 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,” ONGC said.
“We are awaiting those instructions as such,” the company added, signaling that a formal green light from Washington remains the critical final step.
ONGC further stated that “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 US sanctions get lifted.”
Current production across ONGC’s Venezuelan assets stands between 12,000 and 15,000 barrels per day, a figure the company hopes to scale up significantly once restrictions are removed.
If operational control is restored and approvals are secured, ONGC Videsh expects production capacity could rise to between 45,000 and 50,000 barrels per day, representing a dramatic increase in output.
India is engaged in active diplomatic discussions with both Venezuela and the United States to unlock the frozen dividend funds and facilitate a broader energy partnership.
The momentum behind ONGC’s push gained further credibility after Reliance Industries Ltd received a general license from the United States to purchase Venezuelan crude, signaling a broader softening of Washington’s posture toward Caracas.
ONGC Videsh applied for a specific U.S. Treasury OFAC license in 2024, and that application has advanced under eased sanctions rules introduced following measures enacted on January 29.
The developments come in the context of Nicolas Maduro’s removal from power, which has opened the door to a gradual normalization of international energy investment in Venezuela’s vast but long-neglected oil sector.
