ONGC Secures US Licence To Expand Venezuela Operations

ONGC has secured a US licence to expand its operations in Venezuela and increase oil production. This move will strengthen ONGC's international presence and support higher output from its Venezuelan projects, amid evolving energy ties.

The approval from the US Treasury's Office of Foreign Assets Control (OFAC) gives ONGC greater flexibility to manage its Venezuelan assets, make fresh investments, and pursue agreements that could increase production. With the new licence in place, ONGC can now look at increasing output from its existing projects and potentially taking on a larger operational role in some of its Venezuelan ventures.

ONGC Videsh has interests in Venezuelan oil projects including San Cristóbal and Carabobo-1. The company has faced significant operational and financial constraints in recent years due to the sanctions environment. With the new US authorization, ONGC can now work with its Venezuelan partners, undertake investments, and improve production from assets that have been operating well below their potential.

One of the immediate priorities will be increasing oil output. San Cristóbal produced around 0.265 million tonnes of oil equivalent during FY26, a level that represents only about one-tenth of the field's potential. The OFAC licence gives ONGC the ability to invest in the project and pursue measures aimed at raising production.