India's ONGC plans $200 mln investment to boost Venezuela oilfield output tenfold

Published Aug 27, 10:09 PM UTC

India's state-owned Oil and Natural Gas Corporation (ONGC) plans to invest approximately $200 million to revive production at the San Cristobal oilfield in Venezuela, aiming for a tenfold increase in output. The field, jointly owned with Venezuelan state oil firm PDVSA (ONGC holds 40%, PDVSA 60%), currently produces 4,000-5,000 barrels per day (bpd). ONGC's goal is to restore output to its previous peak of up to 50,000 bpd, which was achieved before U.S. sanctions and mismanagement crippled production. ONGC recently secured a license from the U.S. Office of Foreign Assets Control (OFAC) to return to Venezuela. The investment plan is pending final agreement between ONGC and PDVSA, with ONGC covering PDVSA's share and recouping costs through future production. The investment is expected over the next 12 months.