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ONGC secures U.S. license to restart Venezuela operations

The license could help ONGC unlock more than $500 million in outstanding dividends tied to its stakes in two Venezuelan oil projects.

Reported · Written up by our desk · Energy

India’s Oil and Natural Gas Corporation has secured a license from the U.S. Office of Foreign Assets Control to return to Venezuela, Indian media reported, after sanctions had sharply limited its activity.

ONGC has a 40% stake in the San Cristobal oil project and an 11% stake in the Carabobo project, and its return could open up access to over $500 million in outstanding dividends from those holdings.

The company is also reportedly in talks with Venezuela’s government that could result in new partnership deals. Those deals could include ONGC taking over operatorship of San Cristobal and Carabobo, with the latter being under development.

The development follows earlier statements from ONGC’s finance director cited by Reuters, saying ONGC Videsh had “full freedom” to pursue Venezuela opportunities after easing of sanctions-related constraints. The article also points to incentives for foreign investors under Venezuela’s new petroleum law, and says ONGC is confident agreements involving operatorship transfers from PDVSA could be finalized soon.

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