ONGC Secures US License to Resume Full Operations in Venezuela

State-owned Oil and Natural Gas Corp (ONGC) has received a US license to resume full operations in Venezuela, allowing it to expand production and sign new agreements. The company holds a 40% interest in the San Cristobal oil project and an 11% stake in the Carabobo project, both of which are under development.

The US Treasury's Office of Foreign Assets Control (OFAC) license removes a key hurdle for ONGC's Venezuelan investments, enabling it to manage finances and recover pending dividends. The company expects to see new agreements and potentially take over operatorship of some projects from Venezuela's state oil company PDVSA in the near term.

ONGC sees Venezuela as strategically important due to its vast oil reserves, estimated at 303 billion barrels by OPEC. The company plans to focus on shallow, onshore fields where it has relevant operating expertise from domestic fields in Western India.