ONGC Set to Revive Venezuela Operations as U.S. Licence Opens Door to Expanded Role

India’s state-run Oil and Natural Gas Corporation (ONGC) is preparing for a major return to Venezuela’s oil industry after obtaining the necessary U.S. authorisation to resume activities in the country. The development could allow ONGC Videsh, the company’s overseas arm, to move beyond its existing investments and pursue a larger operational role in two Venezuelan oil projects.

ONGC has maintained interests in Venezuela for several years, but U.S. sanctions had severely restricted its ability to operate the assets, receive revenues and undertake fresh investments. The easing of those restrictions now gives the Indian company greater room to engage directly with its Venezuelan partners and develop plans for increasing production. ONGC’s own overseas portfolio confirms that it currently has two Venezuelan projects — San Cristobal and Carabobo-1.

The San Cristobal field is particularly important to ONGC, with ONGC Videsh holding a 40% participating interest. In Carabobo-1, ONGC Videsh has an 11% stake, alongside Indian Oil Corporation and Oil India, while Repsol and Venezuela’s state-owned PDVSA are also partners. The company is now seeking a more influential position in both projects, including the possibility of becoming the sole operator of San Cristobal and a joint operator of Carabobo-1 with Repsol.

The proposed expansion is not limited to operational control. ONGC has also been exploring the possibility of acquiring additional interests from PDVSA. Such a move would increase its exposure to Venezuela’s heavy-oil resources while giving the Indian energy major greater influence over investment, field development and production decisions.

One of the biggest financial attractions is the recovery of money that has remained tied up in Venezuela. ONGC Videsh has accumulated roughly $600 million in unpaid dividends from its Venezuelan interests as sanctions complicated the movement of funds. The company had previously explored arrangements to receive crude oil instead of cash dividends, highlighting the importance of restoring a workable financial mechanism for its Venezuelan investments.

Increasing production will therefore be a central objective once operations are fully restored. Reports indicate that ONGC is looking at raising output from the affected assets to around 30,000 barrels per day, with longer-term potential for further growth. Higher production would not only improve the commercial performance of the projects but could also help the company gradually unlock value that has remained inaccessible during the sanctions period.

The timing is significant as Venezuela’s petroleum industry is undergoing a broader reopening to international energy companies. U.S. authorities have granted permissions to selected foreign oil companies, while Venezuela has introduced changes intended to attract greater international participation. This changing environment has encouraged ONGC to reconsider the scale of its presence in the country.

For India, the renewed Venezuelan opportunity carries strategic importance beyond the commercial interests of ONGC. Venezuela possesses some of the world’s largest oil reserves, while India remains heavily dependent on overseas crude supplies. A stronger position in Venezuelan production could provide India with another source of long-term energy resources and broaden the geographical spread of its overseas oil investments.

ONGC’s renewed Venezuela strategy also reflects a wider effort by the company to strengthen its international upstream portfolio. The company currently has projects across several oil and gas-producing regions, including Russia, Brazil, Colombia, Mozambique and the Middle East, with Venezuela forming part of this diversified overseas footprint.

The immediate focus will now be on translating the new regulatory freedom into actual field activity. Securing operatorship, negotiating additional interests, restoring production and finding a sustainable route for dividend recovery will determine how successfully ONGC can convert its long-standing Venezuelan investments into productive assets.

If those objectives are achieved, Venezuela could emerge as a significantly more valuable component of ONGC Videsh’s international portfolio. For India, the development represents an opportunity to deepen its upstream presence in one of the world’s most resource-rich oil markets while strengthening the country’s broader strategy of securing reliable overseas energy assets.