State-owned Oil and Natural Gas Corporation (ONGC) has clarified reports regarding the resumption of its overseas subsidiary ONGC Videsh Limited’s (OVL) oil and gas operations in Venezuela, saying the company is pursuing the required authorization from the U.S. Office of Foreign Assets Control (OFAC).
In a clarification to the stock exchanges on August 18, ONGC said OVL has two assets in Venezuela — San Cristobal and Carabobo — and has been pursuing Office of Foreign Assets Control (OFAC) authorization for oil and gas operations in the country.
ONGC said the required approval was received from the U.S. government in July 2026. Framework agreements for determining the further course of action for both assets are currently under discussion with relevant stakeholders, it added.
The clarification follows a report published on August 16 stating that ONGC had received a U.S. licence to resume full operations in Venezuela.
ONGC, however, said no material movement had been noticed in its share price following the development. The company also said that the operational or financial impact of the development could not be determined at this stage and, accordingly, no disclosure had been submitted to the stock exchanges.
The development could pave the way for OVL to advance discussions concerning its Venezuelan assets, subject to the applicable regulatory approvals and completion of the framework arrangements with relevant stakeholders.
Venezuela’s strategic importance
Venezuela is strategically important for ONGC because it holds the world's largest proven crude oil reserves, estimated by OPEC at about 303 billion barrels, more than those of Saudi Arabia.
Much of the country's production potential remains constrained by years of underinvestment, sanctions, and operational difficulties, leaving substantial scope for additional development.
ONGC Videsh Ltd, the company's overseas investment arm, holds a 40% interest in the San Cristobal oil project, while the remaining 60% is held by Venezuela's Petroleos de Venezuela S.A. (PDVSA).
OVL invested in Venezuelan oil assets through joint ventures, but sanctions imposed by Washington on Venezuela's oil sector have periodically restricted the scope of operations and dealings with PDVSA.
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