ONGC Resumes Full Operations in Venezuela with US License

State-owned Oil and Natural Gas Corp (ONGC) has secured a US license to resume full operations in Venezuela, thanks to the easing of sanctions-related risks. The company now expects to recover pending dividends and potentially take operatorship of certain projects from state oil company PDVSA.

The US Treasury's Office of Foreign Assets Control (OFAC) license removes key hurdles for ONGC's Venezuelan investments and could pave the way for expansion, new agreements, and increased production. ONGC Videsh Ltd, its overseas investment arm, holds a 40% interest in the San Cristobal oil project.

With this development, India seeks to secure overseas oil resources and diversify its supply base amid heightened geopolitical risks. ONGC sees Venezuela as strategically important due to its vast crude oil reserves, estimated at around 303 billion barrels.