ONGC Secures U.S. License to Resume Full Venezuela Operations

State-owned Oil and Natural Gas Corp (ONGC) has received a license from the U.S. Treasury's Office of Foreign Assets Control (OFAC), allowing it to resume full operations in Venezuela after years of limiting activity due to sanctions-related risks.

Anupam Agarwal, director-finance at ONGC, stated that the U.S. approval removes a key hurdle for ONGC's Venezuelan investments and could pave the way for the state-run explorer to expand production, sign new agreements, and 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% interest in the San Cristobal oil project, while the remaining is with Venezuela's Petroleos de Venezuela S.A. (PDVSA). It also holds an 11% stake in the Carabobo project, which is under development.

The OFAC license will enable ONGC to manage the finances of its Venezuelan projects and help it recover a pending dividend of more than $500 million.