ONGC Secures U.S. Licence for Full Venezuela Operations
State-owned Oil and Natural Gas Corporation (ONGC) has obtained a licence from the U.S. Treasury’s Office of Foreign Assets Control (OFAC), allowing it to resume full operations in Venezuela after years of limiting activities due to sanctions-related risks, according to a senior company official.
The approval clears a major obstacle for ONGC’s investments in Venezuela and could allow the state-run energy firm to expand production, sign new agreements, and potentially take over operatorship of some projects from Venezuela’s state oil company, PDVSA.
ONGC Videsh Ltd, the company’s overseas investment arm, holds a 40% stake in the San Cristobal oil project, while the remaining shares are held by PDVSA. It also has an 11% interest in the Carabobo project, which is under development. The OFAC licence will enable ONGC to manage its Venezuelan projects’ finances and recover a pending dividend of over $500 million.
The company is currently in discussions with Venezuelan authorities and joint-venture partners regarding its interests in the San Cristobal and Carabobo projects, expecting positive developments soon.
U.S. sanctions on Venezuela’s oil sector have long complicated financial transactions and operations involving Venezuelan crude. ONGC had previously curtailed activities despite its long-standing presence in the country.
With the licence, ONGC can now invest in increasing oil production. The San Cristobal project produced around 0.265 million tonnes of oil equivalent in FY26, which is just a tenth of its potential.
Venezuela holds the world’s largest proven crude oil reserves, estimated at about 303 billion barrels by OPEC. However, years of underinvestment, sanctions, and operational challenges have limited production.
ONGC sees opportunities to leverage its expertise in shallow onshore fields, similar to those in Western India, to develop these projects. The company is now looking to accelerate development following the easing of sanctions-related constraints.
The renewed focus on Venezuela aligns with India’s strategy to secure overseas oil resources and diversify its supply base amid rising geopolitical risks. For ONGC, greater control over Venezuelan fields could position it as a key player in unlocking some of the world’s largest undeveloped hydrocarbon reserves.