ONGC Wins US Licence to Boost Oil Output in Venezuela

State-run Oil and Natural Gas Corporation (ONGC) has received a licence from the US Treasury's Office of Foreign Assets Control (OFAC), easing sanctions-related restrictions on its operations in Venezuela.

The clearance will allow ONGC to invest more in its Venezuelan assets, increase oil production, and pursue new agreements. The company is also exploring the possibility of taking over the operation of some projects currently managed by Venezuela's state-owned oil company PDVSA.

Anupam Agarwal, director-finance at ONGC, said that the company can now work on its Venezuelan project with fewer constraints due to the easing of sanctions-related risks. The licence will also help address financial issues linked to its Venezuelan assets and enable it to handle project-related finances and recover a pending dividend of more than $500 million.

ONGC has been holding discussions with Venezuelan authorities and its joint-venture partners on its investments in the country. Agarwal said that the company expects to make progress on new agreements and is also looking at taking over operatorship of some projects from PDVSA.