ONGC Gets US Green Light for Venezuela Operations

India’s state-run

, through its overseas arm ONGC Videsh (OVL), has received U.S. approval to fully operate its Venezuelan oil projects, clearing a key hurdle created by sanctions. The move could allow ONGC to significantly expand its role in Venezuela’s oil sector. ONGC is also preparing to sign agreements under Venezuela’s revised petroleum law to potentially take over operatorship of two oil blocks from state-owned PDVSA—San Cristobal and Carabobo-1. OVL currently holds a 40% stake in San Cristobal and an 11% stake in Carabobo-1, while PDVSA remains the majority partner. The development is strategically important for ONGC as greater operational control could help increase production, improve field development and unlock previously stuck revenues and dividends from Venezuela. The company had earlier faced restrictions on operating and repatriating income because of U.S. sanctions. Overall, the U.S. approval marks a major positive for ONGC’s overseas upstream business and could strengthen India’s access to Venezuela’s large oil reserves, provided the proposed operatorship agreements with PDVSA are finalised.