ONGC plans $200 million investment in Venezuela oil field

The Indian state-owned energy company, Oil and Natural Gas Corporation (ONGC), is planning to invest approximately $200 million to revitalize the San Cristóbal oil field in Anzoátegui state, Venezuela.

Negotiations are currently underway between ONGC and the Venezuelan state corporation PDVSA. The proposed ownership structure would grant PDVSA a 60% stake and ONGC a 40% stake. Under the discussed terms, the Indian firm would finance the initial operational costs required by the Venezuelan side, with the loan to be repaid through the future sale of crude oil extracted from the field.

The investment is facilitated by a specific license from the US Office of Foreign Assets Control (OFAC), allowing the company to resume full operations. The project aims to significantly increase production levels; the San Cristóbal complex currently produces between 4,000 and 5,000 barrels per day, a sharp decline from its historical peak of 45,000 to 50,000 barrels per day.