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ONGC plans $200 million to revive Venezuela’s San Cristobal output

ONGC’s overseas unit, ONGC Videsh, holds a 40% stake in the San Cristobal oilfield, where production is currently about 4,000 to 5,000 barrels per day.

Reported · Written up by our desk · Energy

India’s state-owned Oil and Natural Gas Corporation (ONGC) plans to invest about $200 million to revive production at the San Cristobal oilfield in Venezuela, Economic Times reported, citing sources familiar with the matter.

According to OilPrice, ONGC Videsh Ltd (OVL), ONGC’s overseas arm, holds a 40% interest in San Cristobal, with Venezuelan state oil firm PDVSA holding the remaining 60%. The project is in the Orinoco Belt, and the funding would support an investment plan to be agreed with PDVSA.

OilPrice reports that ONGC secured a license from the U.S. Office of Foreign Assets Control (OFAC) earlier this month, enabling the company to return to Venezuela after years of curbed activity under U.S. sanctions.

The company’s investment over the next 12 months is aimed at boosting San Cristobal output by about tenfold over the coming years, from current levels of roughly 4,000 to 5,000 barrels per day, OilPrice reported.

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