ONGC secures US OFAC license to resume full Venezuela operations

Published Aug 16, 08:02 AM UTC

State-owned Oil and Natural Gas Corp (ONGC) has secured a licence from the U.S. Treasury's Office of Foreign Assets Control (OFAC), allowing it to resume full operations in Venezuela after years of limiting activity due to sanctions-related risks. The approval removes a key hurdle for ONGC's Venezuelan investments and could pave the way for the state-run explorer to expand production, sign new agreements, and take over operatorship of some projects from Venezuela's state oil company PDVSA. ONGC Videsh Ltd holds a 40% interest in the San Cristobal oil project and an 11% stake in the Carabobo project. The licence enables the company to manage finances and recover a pending dividend of over $500 million. ONGC is bullish on Venezuela, citing the country's vast crude reserves and a new petroleum law providing fiscal incentives.