State‑owned Oil and Natural Gas Corporation has secured a licence from the United States Treasury’s Office of Foreign Assets Control, enabling it to resume full operations in Venezuela after years of restricted activity due to sanctions.

The approval removes a major obstacle for ONGC’s Venezuelan investments and opens the door for expanded production, new agreements, and potential operatorship of projects currently managed by Venezuela’s state oil company PDVSA.

Anupam Agarwal, ONGC’s director‑finance, confirmed the development during an investor call following the company’s first quarter earnings announcement.

Agarwal stated that ONGC now has complete freedom to pursue its Venezuelan projects, as the sanction‑related risks that previously limited operations have been lifted. ONGC Videsh Ltd, the overseas investment arm of the company, holds a 40 per cent interest in the San Cristobal oil project, with PDVSA retaining the remainder.

It also has an 11 per cent stake in the Carabobo project, which is still under development. The licence will allow ONGC to manage finances for these ventures and recover a pending dividend exceeding USD 500 million.

The company is already engaged in discussions with Venezuelan authorities and joint‑venture partners regarding its stakes in San Cristobal and Carabobo. ONGC anticipates positive developments soon, including new agreements and the possible transfer of operatorship from PDVSA.

The licence is particularly significant because US sanctions on Venezuela’s oil sector have long complicated financial transactions, investments, and operations involving Venezuelan crude. ONGC had therefore scaled back its activities despite its established presence in the country.

With the licence in place, ONGC can now invest in raising production levels. San Cristobal produced approximately 0.265 million tons of oil equivalent in FY26, which represents only a fraction of its potential. The company intends to increase output substantially.

Venezuela’s importance lies in its vast reserves, with OPEC estimating proven crude oil reserves at about 303 billion barrels, surpassing Saudi Arabia. However, years of underinvestment, sanctions, and operational challenges have constrained production, leaving considerable scope for development.

Agarwal highlighted that Venezuela’s newly enacted petroleum law offers fiscal incentives for resource development, improving the investment climate for foreign companies and their local partners.

ONGC’s focus will be on shallow, onshore fields, where it can leverage its expertise from domestic operations in Western India, particularly Mehsana and Ahmedabad. The company views these projects as a natural extension of its capabilities and is keen to accelerate development now that sanctions‑related constraints have eased.

Expressing optimism, Agarwal said ONGC is bullish on Venezuela and expects new agreements and potential operatorship transfers from PDVSA in the near future.

ONGC Videsh had invested in Venezuelan oil assets through joint ventures, but Washington’s sanctions periodically restricted operations and dealings with PDVSA.

The renewed push into Venezuela aligns with India’s broader strategy to secure overseas oil resources and diversify its supply base amid global geopolitical uncertainties.

For ONGC, gaining greater operational control over Venezuelan fields could position the company to play a larger role in unlocking some of the world’s most significant undeveloped and underproduced hydrocarbon resources.

The licence marks a turning point, allowing ONGC to transform constrained ventures into growth opportunities and strengthen India’s energy security.

PTI