ONGC Gets US Green Light to Ramp Up Venezuela Oil Output

India's Oil and Natural Gas Corporation (ONGC) has received approval from the US Treasury's Office of Foreign Assets Control (OFAC) to expand its operations in Venezuela. This licence will allow ONGC to increase oil production, pursue new agreements with local partners, and take over the operation of some projects currently managed by Venezuela's state-owned oil company PDVSA.

The approval gives ONGC greater freedom to invest in its Venezuelan assets and resolve financial issues connected with its investments. The company expects to gain flexibility in handling project-related finances and recover more than $500 million in pending dividends.

ONGC has been in discussions with Venezuelan authorities and its joint-venture partners over its investments and future projects. Anupam Agarwal, ONGC's director of finance, said the company is seeking new agreements and exploring the possibility of taking over operatorship of some projects from PDVSA.