ONGC Negotiates to Operate Venezuelan Oilfields, Seeks $500 Million
ONGC Videsh is in advanced talks to operate Venezuelan oil projects, aiming to recover over $500 million owed in dividends.
NEW DELHI, Nov 7: India’s Oil and Natural Gas Corporation (ONGC) is negotiating to assume operations at two oil projects in Venezuela, aiming to recover over $500 million in owed dividends. ONGC Videsh, the company’s overseas arm, plans to finalize agreements with Venezuelan and U.S. authorities within six months, according to finance chief Anupam Agarwal.
Currently, ONGC holds stakes in the San Cristobal and Carabobo 1 projects but does not operate them. Under the proposed agreement, ONGC would manage these fields and handle their production and sales. At San Cristobal, ONGC owns 40%, while the Venezuelan state oil company PDVSA holds the remaining 60%. For Carabobo 1, ONGC and other Indian entities collectively own 18%, alongside Spain’s Repsol, which has an 11% stake.
Agarwal noted that the arrangements could also enable ONGC to secure interests in more Venezuelan oilfields, although specifics about the dividend settlement are still in negotiation. This move comes as Venezuela attempts to revitalize its oil sector, which has struggled due to years of underinvestment and operational difficulties.
Chevron has recently announced plans for more than $7 billion in investment in Venezuela over the next five years. Other international companies like Eni and Repsol are also expanding their roles in the Venezuelan oil industry. Rystad Energy has projected that Venezuela could reach oil production rates of 1.6 million barrels per day by 2028, contingent upon significant investments.
However, challenges remain. Only two drilling rigs were reported active in Venezuela as of August, while Baker Hughes data indicates around 50 would be necessary to meet the production forecasts.
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