ONGC Secures US License to Re-Enter Venezuelan Oil Market
India's Oil and Natural Gas Corporation (ONGC) has secured a license from the US Office of Foreign Assets Control to return to Venezuela. This move could open up access to over $500 million in outstanding dividends from ONGC's stakes in two oil projects: San Cristobal and Carabobo.
ONGC currently holds a 40% stake in San Cristobal and an 11% stake in Carabobo, but its activities were severely curtailed due to US sanctions. Now that the company has gained 'full freedom' to pursue opportunities in Venezuela, ONGC is negotiating with the Venezuelan government for new partnership deals.
These deals could see ONGC take over the operatorship of San Cristobal and Carabobo, which are under development. Venezuela's new petroleum law has offered additional incentives for foreign investors, making it an attractive destination for companies like ONGC.
India has been increasing its imports from countries such as Russia, Brazil, and Venezuela to replace lost Middle Eastern barrels due to the ongoing blockade of the Strait of Hormuz. The country now relies on imports for 90% of its crude consumption.