2 weeks ago
ONGC secures US licence to resume full Venezuela operations
India has a big oil company called ONGC.
The United States had rules that made it hard for ONGC to work in Venezuela.
Now the US government gave ONGC special permission to work there again.
ONGC runs two oil projects in Venezuela, called San Cristobal and Carabobo.
The permission means ONGC can spend money to get more oil out of the ground.
It also helps ONGC get back more than 500 million dollars it is owed.
Venezuela has more oil underground than almost anywhere else, even more than Saudi Arabia.
ONGC says it is 'very bullish' about Venezuela, which means very excited.
This helps India buy oil from different countries.
It is a big step for ONGC.
ONGC secured a licence from the US Treasury's OFAC to resume full operations in Venezuela after years of sanctions-related restrictions.
ONGC Videsh Ltd holds a 40 per cent interest in the San Cristobal oil project and an 11 per cent stake in the Carabobo project, with PDVSA as partner.
The licence could help ONGC recover a pending dividend of more than $500 million from its Venezuelan projects.
San Cristobal produced about 0.265 million tonnes of oil equivalent in FY26, roughly a tenth of its production potential, and ONGC plans to invest to raise output.
ONGC expects new agreements and a possible transfer of operatorship from PDVSA, and is 'very bullish' on Venezuela as India seeks to diversify its oil supply.
- Who
- ONGC (Oil and Natural Gas Corp), India's state-owned oil explorer, its overseas arm ONGC Videsh Ltd, and Venezuela's state oil company PDVSA.
- What
- ONGC secured a US licence from OFAC allowing it to resume full oil operations in Venezuela after years of sanctions-related restrictions.
- Where
- Venezuela, specifically the San Cristobal and Carabobo oil projects.
- When
- Announced in August 2026, following ONGC's first quarter earnings.
- Why
- US sanctions had previously restricted operations; the licence lets ONGC invest in production, sign new agreements and recover a pending dividend of more than $500 million.
Key facts
- Company
- Oil and Natural Gas Corp (ONGC)
- Licence issuer
- US Treasury's Office of Foreign Assets Control (OFAC)
- San Cristobal stake
- 40 per cent (ONGC Videsh Ltd)
- Carabobo stake
- 11 per cent
- Pending dividend
- More than $500 million
- San Cristobal FY26 production
- Around 0.265 million tonnes of oil equivalent
- Venezuela proven oil reserves
- About 303 billion barrels (OPEC estimate)
- Published
- August 16, 2026
Quotes
Anupam Agarwal
Director‑Finance, ONGC
“Now we have full freedom to work on the Venezuela project because earlier we were restricting our operations there because of the sanction-related risks. Those risks are behind us.”
thehindubusinessline.com
“We are very bullish for Venezuela. ONGC expects to see new agreements and potentially take over operatorship of some projects from PDVSA in the near term.”
thehindubusinessline.com
Sources
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