Mumbai: ONGC Videsh Ltd (OVL), the overseas arm of state-run Oil and Natural Gas Corporation (ONGC), on Friday expressed strong hope of resuming stalled operations in Venezuela, buoyed by the US Trump administration’s ongoing easing of oil sanctions following Nicolas Maduro’s ouster last month, reports said.
Speaking on an investor call, ONGC management said the direction is positive. “The US government is progressively lifting sanctions or liberalising trade from Venezuela, allowing other countries and companies to start operations,” the company noted. “We await formal instructions and are hopeful to restart once on-ground and US sanctions lift.”
OVL’s stakes — 40% in San Cristobal and 11% in Carabobo, both operated by Petróleos de Venezuela SA (PdVSA) — have produced minimally for years due to sanctions, underinvestment and payment hurdles. Around $600 million in dividends remain stranded, with PdVSA earlier proposing oil in lieu of cash. India is holding diplomatic talks with Venezuela and the US to unlock these funds, amid potential production ramp-up to 45,000-50,000 barrels per day from current 12,000-15,000.
In 2024, OVL applied for a specific US Treasury (OFAC) licence, now advancing under eased rules post-January 29 measures.
Reports said OVL is equally upbeat on Russia’s Sakhalin-1 project (20% stake), where $800 million in frozen dividends could be accessed via government support. “Equity secured with Russian and Indian help; hopeful for dividends this year,” ONGC said, noting rouble payments to abandonment funds.
Domestically, ONGC targets 42.5 million tonnes oil equivalent for FY27 (21 MT oil, 21.5 MT gas), with Rs 32,000-33,000 crore capex, including up to Rs 12,000 crore for exploration drilling 100+ wells in frontier basins.
ONGC reported a consolidated net profit of Rs 11,946.42 crore in the December quarter, up 22 percent from the year-ago period. Revenue remained largely unchanged at Rs 1.67 lakh crore.
