India Hopes To Take Over Operation Of Venezuelan Oil Fields From PDVSA
India’s ONGC is poised to take over operation of two Venezuelan oil projects from state-owned PDVSA, which would give the Indian producer direct operational control over assets of the world’s largest proven crude oil reserves. Reuters exclusively reported Wednesday that ONGC expects to sign new agreements “very soon” under Venezuela’s new petroleum law after years of limiting its activities…
ONGC, India's state-owned oil exploration firm, is on the verge of taking over the operations of two oil projects in Venezuela from the state-owned PDVSA. This development could provide ONGC with direct operational control over assets from the world's largest proven crude oil reserves. ONGC expects to finalize new agreements with Venezuela's new petroleum law very soon, ending the years-long restrictions due to U.S. sanctions.
Finance Director Anupam Agarwal disclosed during the company's June-quarter earnings call that ONGC Videsh, the overseas arm of ONGC, now has unrestricted freedom to explore opportunities in Venezuela. The company currently holds a 40% stake in the San Cristobal oil field and an 18% interest in the Carabobo-1 heavy oil project. Agarwal expressed confidence in the new petroleum law, stating that it offers additional incentives for foreign investors.
ONGC also announced the restoration of its full 20% stake in Russia's Sakhalin-1 oil and gas project, which had been disrupted for four years due to Russia's restructuring following Western sanctions. The restored interest has doubled the project's quarterly revenue contribution to approximately 10 billion Indian rupees ($105 million), up from around 5 billion to 6 billion rupees previously.
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