ONGC Secures US Licence to Resume Full Venezuela Operations

State-owned Oil and Natural Gas Corp (ONGC) has secured a licence from the US 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.

The US 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 per cent 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 per cent stake in the Carabobo project.

With the OFAC license, ONGC can now manage the finances of its Venezuelan projects and help recover a pending dividend of more than USD 500 million.