19 hrs ago
OVL seeks $500 million Venezuela dividend payout, crude option
ONGC Videsh Limited has money stuck in Venezuela from its oil projects.
The amount is nearly $500 million.
The company is discussing whether Venezuela will pay in cash or crude oil.
OVL owns parts of two Venezuelan oil projects.
The United States allowed OVL to restart operations in July 2026.
OVL and Venezuelan officials are preparing a plan for the projects.
That plan may be ready within three months.
India is also buying more Venezuelan oil to diversify its crude supplies.
ONGC Videsh Limited is negotiating to recover nearly $500 million in blocked Venezuelan dividends.
The payment could be made in cash or through crude oil supplies from Petróleos de Venezuela S.A.
OVL holds 40% of the San Cristobal project and 11% of the Carabobo project with PDVSA.
A broader operating framework for both projects could be finalized within three months.
Venezuela shipped about 350,000 barrels of crude per day to India in August after sanctions relief.
- Who
- ONGC Videsh Limited, Venezuelan authorities and Petróleos de Venezuela S.A. are negotiating the dividend recovery.
- What
- OVL is seeking nearly $500 million in blocked dividends and preparing to resume operations in two Venezuelan oil projects.
- Where
- The projects are in Venezuela, and the negotiations involve Venezuelan authorities and PDVSA.
- When
- The US authorization was received in July 2026; the operating framework could be completed within three months.
- Why
- OVL is seeking to recover unpaid earnings and restart operations after US sanctions relief.
Key facts
- Dividend sought
- Nearly $500 million
- Payment options
- Cash or crude oil supplies
- San Cristobal stake
- 40% held by OVL
- Carabobo stake
- 11% held by OVL
- US authorization
- General OFAC licence received in July 2026
- Framework timeline
- Expected within three months
- Venezuelan crude shipments to India
- About 350,000 barrels per day in August
Quotes
Sumit Ritolia
Senior manager for modelling at commodity tracker Kpler.
“If U.S. and Venezuelan crude are combined, the Americas are becoming more important to India’s crude basket, but the recent increase is predominantly being driven by Venezuela rather than by a major ramp-up in U.S. crude.”
financialexpress.com
“The required go ahead was received from US Govt. in July, 2026. Framework agreements for further course of action in both the assets are under discussion with relevant stakeholders.”
financialexpress.com
Official aware of the discussions
An official familiar with negotiations between OVL, Venezuelan authorities and PDVSA.
“Talks are underway for the dividend due to OVL and it is also being negotiated whether it would be paid in cash or in terms of oil supplies. This should be resolved by the time the framework is prepared.”
financialexpress.com
Sources
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