ONGC secures US license to resume full operations in Venezuela

India’s state-owned Oil and Natural Gas Corporation (ONGC) has obtained a license from the United States Treasury’s Office of Foreign Assets Control (OFAC), allowing the company to resume full operations in Venezuela. The license removes previous sanction-related risks that had forced the company to scale back its activities in the region.

Through its overseas investment arm, ONGC Videsh Ltd, the company holds a 40 percent interest in the San Cristobal oil project and an 11 percent stake in the Carabobo project, which is currently under development. The OFAC approval enables ONGC to manage finances for these ventures and facilitates the recovery of a pending dividend exceeding USD 500 million.

ONGC officials indicated that the company is in discussions with Venezuelan authorities and joint-venture partners regarding its interests. The company aims to increase production levels and is exploring the possibility of taking over operatorship of certain projects from Venezuela’s state oil company, PDVSA.