ONGC Videsh Ltd (OVL), the overseas subsidiary of Oil and Natural Gas Corporation (ONGC), is nearing approval from the US Office of Foreign Assets Control (OFAC) to resume operations in Venezuela. OVL’s Managing Director, Rajarshi Gupta, announced that the company has applied for a specific license to operate two oil fields in Venezuela—San Cristobal and Carabobo-1—where it holds stakes. These fields have been dormant due to Venezuela’s financial crisis and US sanctions, preventing OVL from repatriating around $500 million in dividends.
OVL has been in discussions with both the Venezuelan government and OFAC, seeking the same operational permissions granted to US oil giant Chevron. PDVSA, the Venezuelan state-run company that holds the majority stake and controls operations, has agreed to grant OVL operational control, contingent upon US sanction exemptions.
OVL, which holds a 49% stake in San Cristobal and 11% in Carabobo-1, is prepared to increase its workforce and production capacity in Venezuela once the necessary approvals are secured. Current production from these fields is 12,000-15,000 barrels per day (bpd), with potential to boost output to 45,000-50,000 bpd.
