ONGC gets US licence to expand Venezuela operations, boost oil output
ONGC has successfully obtained approval from the US Treasury, allowing it to further extend its oil operations in Venezuela. The newly acquired license significantly reduces sanctions-related barriers, paving the way for increased investments and production capabilities. With this development, ONGC can explore new contracts and possibly take over projects from PDVSA.
ONGC has received a license from the US Treasury's Office of Foreign Assets Control (OFAC) to expand its oil operations in Venezuela, easing sanctions-related restrictions. This clearance allows the company to invest more in its Venezuelan assets, boost oil production and pursue new agreements. ONGC's director-finance, Anupam Agarwal, noted that the company can now conduct its Venezuela operations with fewer constraints due to the removal of sanction-related risks.
Moreover, the license could aid ONGC in resolving financial issues related to its assets in Venezuela, potentially enabling it to recover a pending dividend of over $500 million. ONGC has been negotiating with Venezuelan authorities and its joint-venture partners on its investments in the country, and expects to make progress on new agreements.
The company is particularly interested in shallow, onshore fields in Venezuela, where it has experience from its domestic operations in western India. As Venezuela's petroleum law offers additional fiscal incentives, ONGC is optimistic about the future of its operations in the country.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
