ONGC Secures US Sanctions Clearance to Revive Venezuelan Oil Projects

Oil and Natural Gas Corp. Ltd (ONGC) has received a US sanctions license to expand its operations in Venezuela, paving the way for the recovery of over $500 million in unpaid dividends.

The approval by the US Treasury Department's Office of Foreign Assets Control allows ONGC Videsh, the state-run explorer's overseas arm, to resume financial and operational activities at its Venezuelan ventures without restrictions. This comes after years of navigating sanctions-related risks that had limited spending and other activity.

ONGC Videsh owns 40% of the San Cristóbal field, with Petróleos de Venezuela (PDVSA) entities holding the rest, and 11% of Carabobo-1. The company plans to take over operatorship for some projects from PDVSA, giving it a bigger say in drilling, procurement, and production schedules.

With this clearance, ONGC can now move ahead with new agreements with the Venezuelan government and its project partners, as well as secure funding, payments, and control of field operations. The company believes that production at its two Venezuelan projects could be raised to about 30,000 barrels a day within a year and to 50,000 over the next few years.