ONGC Venezuela License From the US Revives India’s PDVSA Oil Ties

India's oil exploration firm, ONGC, has received a license from the US Treasury to resume full oil and gas operations in Venezuela, marking its return to the country's vast crude reserves. The license, issued by the Office of Foreign Assets Control (OFAC), allows ONGC to overcome years of sanctions and restrictions that had previously hindered its operations.

With this clearance, the Indian firm can now manage its Venezuelan oil projects freely and repatriate the billions of dollars in untapped earnings trapped in the country. The move comes as part of a broader US policy, which has granted licenses to major oil companies like BP, Chevron, Eni, Maurel & Prom, Repsol, and Shell, enabling them to re-enter Venezuela's oil fields.

This development is seen as a significant step for India, which aims to capitalize on the abundant Venezuelan crude reserves and turn its frozen investments into active operations. However, the new license comes with restrictions, as US regulations still prohibit trading Venezuela's debt and bonds, and payments must adhere to controlled channels.

Despite these limitations, ONGC's finance director anticipates the potential for over US$500 million in pending dividends to be repatriated, signaling a major boost for India's energy sector and the struggling Venezuelan economy.