2 weeks ago
ONGC clarifies OVL Venezuela operations, framework talks underway
There is a big oil company in India called ONGC, and it has a branch called ONGC Videsh that works in other countries.
One of those countries is Venezuela, which OPEC says has the largest proven crude oil reserves in the world.
For a long time, the United States placed sanctions on Venezuela's oil sector, which made it hard for ONGC Videsh to operate there.
In July 2026, the U.S. government gave the approval that ONGC needed to work in Venezuela again.
After a news report said ONGC received a licence to fully resume operations, the company explained what really happened.
ONGC said it is still talking with its partners about how to move forward with its two projects, San Cristobal and Carabobo.
ONGC Videsh owns 40% of the San Cristobal project, while Venezuela's state oil company PDVSA owns the other 60%.
The company says it doesn't know yet how much money this will make or cost.
So the talks are still going on, and the work has not fully restarted yet.
ONGC clarified to stock exchanges on August 18 that OVL is pursuing authorization from the U.S. Office of Foreign Assets Control (OFAC) for its Venezuela oil and gas operations.
The company said the required approval from the U.S. government was received in July 2026.
Framework agreements for OVL's two Venezuelan assets, San Cristobal and Carabobo, are under discussion with relevant stakeholders.
The clarification follows an August 16 report stating ONGC had received a U.S. licence to resume full operations in Venezuela.
ONGC said no material movement was noticed in its share price and the operational and financial impact cannot be determined at this stage.
- Who
- India's state-owned Oil and Natural Gas Corporation (ONGC) and its overseas subsidiary ONGC Videsh Limited (OVL), along with stakeholders including Venezuela's PDVSA and the U.S. Office of Foreign Assets Control.
- What
- ONGC clarified that OVL is pursuing OFAC authorization and discussing framework agreements for its San Cristobal and Carabobo oil and gas assets in Venezuela.
- Where
- Venezuela, where OVL's San Cristobal and Carabobo oil projects are located; the clarification was issued by ONGC to stock exchanges in India.
- When
- The clarification was issued on August 18, 2026, following a U.S. approval received in July 2026 and a report published on August 16, 2026.
- Why
- U.S. sanctions on Venezuela's oil sector had restricted OVL's operations, and the company moved to clarify its licensing status after reports suggested a full resumption of operations.
Key facts
- Company
- Oil and Natural Gas Corporation (ONGC)
- Overseas subsidiary
- ONGC Videsh Limited (OVL)
- Venezuelan assets
- San Cristobal and Carabobo
- U.S. approval received
- July 2026
- OVL stake in San Cristobal
- 40%
- PDVSA stake in San Cristobal
- 60%
- Venezuela's proven crude reserves (OPEC estimate)
- About 303 billion barrels
- Clarification date
- August 18, 2026
Sources
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