ONGC Secures US License to Reboot Operations in Sanction-Hit Venezuela

State-owned Oil and Natural Gas Corp (ONGC) has obtained a license from the US Treasury's Office of Foreign Assets Control (OFAC), allowing it to resume full operations in Venezuela. This is a significant development for ONGC as US sanctions on Venezuela's oil sector have complicated financial transactions, investment, and operations involving Venezuelan crude and energy assets.

The OFAC license enables ONGC to manage the finances of its Venezuelan projects and recover a pending dividend of more than $500 million. The company holds a 40% interest in the San Cristobal oil project and an 11% stake in the Carabobo project, which is under development.

Anupam Agarwal, director-finance at ONGC, said that 'Now we have full freedom to work on the Venezuela project because earlier we were restricting our operations there because of the sanction-related risks. Those risks are behind us.'