ONGC Eyes Bigger Presence in Venezuela, Holds Talks with PDVSA for Stakes in Two Oilfields – Indian PSU
India’s state-owned Oil and Natural Gas Corporation (ONGC) is in discussions with Venezuela’s state-run oil company PDVSA to acquire stakes in two major oilfields—San Cristobal and Carabobo—as part of its strategy to strengthen its overseas upstream portfolio.
The proposed acquisition, however, is contingent on ONGC obtaining a special license from the United States, which is required for foreign companies to operate in Venezuela’s oil sector due to ongoing US sanctions.
According to sources familiar with the matter, ONGC is seeking not only equity participation but also greater operational control in the two oilfields. Such a move would enable the company to enhance production, improve operational efficiency, and maximize returns from its investments in the South American nation.
The discussions come at a time when several international energy companies have already secured similar US approvals to continue or expand their operations in Venezuela. ONGC is expected to pursue a comparable authorization to facilitate its planned investment.
Apart from expanding its international asset base, the proposed deal could also help ONGC recover dividends that have remained blocked due to sanctions-related restrictions. The company has faced challenges in repatriating earnings from its Venezuelan investments over the past few years.
If approved, the acquisition would mark a significant step in ONGC’s overseas growth strategy and reinforce India’s long-term energy security by strengthening access to overseas hydrocarbon resources.
Industry experts believe the move reflects India’s continued efforts to diversify its global energy assets while taking advantage of opportunities in resource-rich regions despite geopolitical complexities.
The outcome of the negotiations will largely depend on the US regulatory approval process, which remains the key hurdle before the transaction can move forward.
