ONGC negotiates takeover of Venezuelan oilfields

India’s state-owned Oil and Natural Gas Corp. (ONGC) is in advanced negotiations to take over operations and sales rights for two Venezuelan oil projects: San Cristobal and Carabobo 1. The company expects to finalize agreements within three to six months.

Through its overseas arm, ONGC Videsh, the company is discussing terms with Venezuelan and U.S. authorities. The proposed arrangement would allow ONGC to operate the fields and market their production, a significant shift from previous structures where the Venezuelan state oil company handled sales.

At the San Cristobal project, where ONGC holds a 40% stake, the company expects to assume full operatorship. At Carabobo 1, the operating role would be shared with other investors, including Repsol and various Indian companies.

A key component of the negotiations involves recovering outstanding dividends, which analysts estimate could exceed $500 million. While the specific settlement details for these unpaid dividends are still being finalized, the new operating agreements are intended to address these financial obligations.