ONGC eyes Venezuela oil assets after US nod

A team of ONGC Videsh Ltd. officials arrived in Venezuela to assess the country's oil assets, following a US government approval that lifted sanctions. The team, comprising nearly a dozen individuals, will tour the San Cristobal and Carabobo-1 oil fields and meet with energy officials during a seven-day visit. This marks the first such trip to Venezuela in years.

The US government cleared ONGC Videsh Ltd. to resume operations in Venezuela, where the company holds stakes in the San Cristobal and Carabobo-1 projects. ONGC Videsh Ltd. is in talks to sign a framework agreement with Venezuela and is interested in becoming the operator of both projects. Managing Director Rajarshi Gupta expressed optimism about the potential for increased production in both assets.

The visit coincides with US Energy Secretary Chris Wright's arrival in Venezuela to announce deals aimed at boosting the nation's oil production, in an effort to alleviate pressure on global oil prices. The US government plans to take control of 65 billion barrels of Venezuela's oil reserves in partnership with a company led by energy entrepreneur Alejandro Betancourt.

ONGC Videsh Ltd. holds a 40% stake in the San Cristobal field and an 11% stake in the Carabobo-1 block. Indian Oil Corp. and Oil India Ltd. each have a 3.5% stake in Carabobo-1. The visit comes as Venezuela's oil exports to the world's third-largest oil importer, India, have increased after sanctions were lifted, more than doubling in August from a low base, despite temporary cuts due to Ukrainian attacks disrupting Russian oil flows.