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ONGC eyes operation transfer for two Venezuelan oil projects from PDVSA
The plan follows U.S. sanctions easing, which ONGC says restored freedom for its overseas unit to pursue Venezuela opportunities.
India’s ONGC is preparing to take over operations of two oil projects in Venezuela from state-owned PDVSA, a move that would give the Indian producer direct operational control over assets tied to the world’s largest proven crude oil reserves, OilPrice reported citing Reuters.
According to comments made during ONGC’s June-quarter earnings call, ONGC expects to sign new agreements “very soon” under Venezuela’s new petroleum law. The company said its overseas arm, ONGC Videsh, now has “full freedom” to pursue Venezuela projects after sanctions-related constraints previously limited activity.
ONGC Videsh currently holds a 40% stake in the San Cristobal oil field and an 18% interest in the Carabobo-1 heavy oil project, and ONGC said the new law provides additional incentives for foreign investors.
In a separate update, ONGC disclosed it regained its full 20% stake in Russia’s Sakhalin-1 oil and gas project in December after a four-year disruption tied to Russia’s restructuring following Western sanctions.
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