ONGC gets U.S. licence to resume full Venezuela operations, eyes operatorship
The U.S. approval removes a key hurdle for ONGC's Venezuelan investments and could pave the way for the state-run explorer to expand production
ONGC, the state-owned Oil and Natural Gas Corporation of India, has received a U.S. Treasury license from the Office of Foreign Assets Control (OFAC). This allows the company to resume full operations in Venezuela, a move that could lead to increased production and potential takeover of operatorship from Venezuela's state oil company, PDVSA.
The OFAC license removes a significant barrier for ONGC's investments in Venezuela, as U.S. sanctions have historically complicated financial transactions and operations involving Venezuelan crude and energy assets. ONGC's overseas arm, ONGC Videsh Ltd, holds a 40% stake in the San Cristobal oil project and an 11% stake in the Carabobo project, both of which are under development.
With the new license, ONGC can manage its Venezuelan projects, recover a pending dividend of over $500 million, and potentially increase its production at the San Cristobal site, which produced 0.265 million tonnes of oil equivalent in FY26, representing only 10% of its production potential. The company sees Venezuela as strategically important due to its vast proven crude oil reserves, the largest in the world.
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