New Delhi: ONGC Videsh, the overseas investment arm of Oil and Natural Gas Corporation (ONGC), is preparing to take over the operatorship of two major oil blocks in Venezuela, marking a significant step in the company’s global expansion strategy.
The move comes after years of limited activity due to US sanctions. According to ONGC’s Finance Director Anupam Agarwal, the company now has “full freedom” to resume operations in Venezuela and expects to sign new agreements soon under the country’s revised petroleum law.
ONGC to Assume Operatorship of Two Strategic Oil Blocks
Speaking during ONGC’s Q1 FY27 earnings call, Finance Director Anupam Agarwal said ONGC Videsh is close to signing fresh agreements that will allow it to take over operatorship of two key Venezuelan oil assets from state-owned PDVSA (Petróleos de Venezuela S.A.).
The proposed transition is expected to give ONGC greater operational and financial control over the projects.
The two assets are:
- San Cristobal Oil Field – ONGC Videsh holds a 40% stake
- Carabobo-1 Project – ONGC Videsh, along with other Indian companies, holds an 18% stake
Both projects are currently operated by PDVSA.
Greater Operational Control for ONGC
Taking over operatorship would provide ONGC Videsh with direct responsibility for:
- Production planning
- Field development
- Operational management
- Financial decision-making
- Production optimisation
The move is expected to improve project execution while enhancing the company’s ability to maximise production from the two assets.
Venezuela’s Heavy Oil Belt Offers Significant Potential
Both the San Cristobal and Carabobo-1 projects are located in eastern Venezuela’s heavy oil belt, one of the world’s richest hydrocarbon regions.
Venezuela possesses the largest proven crude oil reserves globally, making the country strategically important for international energy companies.
ONGC believes it is well-positioned to operate these assets because the geological conditions are similar to those found in its onshore oil fields in Mehsana and Ahmedabad in Gujarat.
This existing expertise could help the company efficiently manage heavy oil production in Venezuela.
Boost for India’s Overseas Energy Security
Industry experts believe the proposed operatorship could significantly strengthen ONGC Videsh’s international upstream portfolio.
The development also aligns with India’s long-term strategy of securing overseas oil and gas assets to support the country’s growing energy requirements while maintaining energy security.
If the agreements are finalised, the move is expected to deepen energy cooperation between India and Venezuela and expand ONGC’s global presence in the exploration and production sector.
Strategic Significance of the Move
The renewed activity in Venezuela reflects improving opportunities for ONGC Videsh after years of operational restrictions.
Greater control over overseas producing assets could help the company:
- Increase international oil production
- Strengthen its global asset portfolio
- Improve operational efficiency
- Support India’s long-term energy needs
The initiative also demonstrates ONGC’s continued focus on expanding its overseas footprint while balancing the country’s transition toward cleaner sources of energy.
About ONGC
Oil and Natural Gas Corporation (ONGC) is India’s largest government-owned oil and gas exploration and production company. Through its international arm, ONGC Videsh Limited (OVL), the company has investments in oil and gas projects across multiple countries, helping strengthen India’s energy security by acquiring and developing overseas hydrocarbon assets.
