Indian Oil Giant Secures U.S. License to Return to Venezuela

India’s Oil and Natural Gas Corporation (ONGC) has received a license from the U.S. Office of Foreign Assets Control (OFAC), allowing the company to resume operations in Venezuela after its activities were significantly restricted by earlier U.S. sanctions.

ONGC holds a 40% stake in the San Cristobal oil project and an 11% stake in the Carabobo project. The renewed approval could also help the company recover more than $500 million in pending dividends linked to its investments in these Venezuelan projects.

ONGC is now in discussions with the Venezuelan government regarding possible new partnership agreements. These discussions could lead to ONGC taking over operatorship of the San Cristobal project and the Carabobo project, which is still under development.

Earlier this month, ONGC’s overseas arm, ONGC Videsh, indicated that the easing of sanctions-related restrictions had given it greater freedom to explore opportunities in Venezuela. The company also sees Venezuela’s updated petroleum law as offering improved conditions for foreign investors and expects agreements involving the transfer of operatorship from PDVSA to be finalized in the near future.

The development comes as India continues to diversify its crude oil sources amid disruptions to Middle Eastern supplies caused by the ongoing blockade of the Strait of Hormuz. India has increased crude purchases from Russia, Brazil and Venezuela, while also sourcing more barrels from major African exporters such as Nigeria and Angola. As India depends on imports for around 90% of its crude oil consumption, securing alternative and reliable supply sources remains important.

India had already emerged as the second-largest buyer of Venezuelan crude earlier this year, behind the United States. Venezuelan crude shipments to India reached approximately 427,000 barrels per day in May, more than double the volume recorded in April. Venezuela’s total crude exports are also expected to rise further, potentially reaching 1.5 million barrels per day by 2027, compared with around 1.25 million barrels per day in May.

ONGC’s return could therefore strengthen India’s access to Venezuelan crude while opening new opportunities for the company to expand its role in the country’s oil sector.

Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.