ONGC Secures U.S. Licence to Resume Full Operations in Venezuela
· Business · The Hindu, Moneycontrol, Yahoo Finance
State-owned Oil and Natural Gas Corp has secured a licence from the U.S. Treasury's OFAC, allowing it to resume full operations in Venezuela after years of limited activity due to sanctions-related risks. The U.S. approval removes a major hurdle for ONGC's Venezuelan investments, paving the way for the state-run explorer to expand production, sign new agreements, and potentially take over operatorship from PDVSA. ONGC Videsh Ltd holds a 40% interest in the San Cristobal oil project and an 11% stake in the Carabobo project. The new licence will also enable ONGC to manage project finances and help it recover a pending dividend of more than $500 million. The company is currently in talks with Venezuelan authorities and joint-venture partners over its project interests.
Why it matters
The U.S. licence removes years of operational and financial roadblocks for ONGC in Venezuela, allowing the state explorer to recover over $500 million in pending dividends and potentially expand its overseas crude production.
Read the original report — The Hindu
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