Because of sanctions-related risks, a senior company official said, treasury’s Office of Foreign Assets Control (OFAC), allowing it to resume full operations in Venezuela after years of limiting activity. State-owned Oil and Natural Gas Corp (ONGC) has secured a licence from the U.S.
Because u.S. sanctions on Venezuela’s oil sector have for years complicated financial transactions, investment and operations involving Venezuelan crude and energy assets, the licence is significant for ONGC. The company had therefore curtailed activity despite its longstanding presence in the country. ONGC Videsh Ltd, the company’s overseas investment arm, holds a 40% interest in the San Cristobal oil project, while the remaining is with Venezuela’s Petroleos de Venezuela S.A. (PDVSA). It holds another 11% stake in the Carabobo project, which is under development. An OFAC license would enable the company to manage the finances of its Venezuelan projects and help it recover a pending dividend of more than $500 million.
The U.S. approval removes a key hurdle for ONGC’s Venezuelan investments and could pave the way for the state-run explorer to expand production, sign new agreements and take over operatorship of some projects from Venezuela’s state oil company PDVSA, Anupam Agarwal, director-finance at ONGC, said at an investor call post first quarter earnings announcement.
San Cristobal produced around 0.265 million tonnes of oil equivalent in FY26.
Agarwal said Venezuela’s newly enacted petroleum law provides additional fiscal incentives for resource development, potentially improving the investment environment for foreign oil companies and their local partners. The company can now invest in the projects to raise oil production. This is a 10th of the production potential, and the OFAC license means it can invest in raising output. Mr.
