---
title: "ONGC wins OFAC license to resume Venezuela ops, eyes operatorship"
url: https://projectchintan.com/article/ongc-license-venezuela-operatorship-fdm62
publisher: Project Chintan
author: Project Chintan Newsroom
section: Business
published: 2026-08-16T08:02:21.995Z
modified: 2026-08-16T10:00:08.691Z
language: en-IN
---

# ONGC wins OFAC license to resume Venezuela ops, eyes operatorship

India’s ONGC has secured an OFAC license to restart full operations in Venezuela and may seek to assume operatorship of some projects from PDVSA. The company notes 40% stake in San Cristobal and 11% in Carabobo, with potential dividends and new agreements on the horizon.

## Key takeaways

- ONGC obtained an OFAC licence allowing full operations in Venezuela, enabling stronger financial management and potential expansion.
- ONGC Videsh holds 40% of San Cristobal and 11% of Carabobo; PDVSA holds the remainder of San Cristobal.
- There is an expectation of new agreements and possible transfer of operatorship from PDVSA in the near term.
- San Cristobal produced about 0.265 million tonnes of oil equivalent in FY26, indicating growth potential if production is raised.
- Venezuela’s petroleum law offers fiscal incentives, which ONGC says could improve the investment environment for foreign partners.

## What Happened

State-owned Oil and Natural Gas Corporation Limited (ONGC) received a licence from the U.S. Treasury’s Office of Foreign Assets Control (OFAC) that allows it to resume full operations in Venezuela after years of restricted activity due to sanctions risk. A senior ONGC official said the approval removes a major hurdle and could enable the company to expand production, sign new agreements, and take over operatorship of some projects from PDVSA, the Venezuelan state oil company.

ONGC Videsh Ltd, the overseas investment arm, holds a 40% stake in the San Cristobal oil project, while PDVSA holds the remaining 60%. The company also has an 11% stake in the Carabobo project, which is under development. The licence would let ONGC manage finances for its Venezuelan projects and pursue investments to boost output, including potentially recovering a pending dividend of more than $500 million.

In remarks during an investor call after ONGC’s first-quarter earnings announcement, Anupam Agarwal, the director-finance at ONGC, stated that sanctions-related risks had previously constrained activity and that those risks are now behind the company. He indicated discussions are already underway with Venezuelan authorities and joint-venture partners about its interests in San Cristobal and Carabobo, with expectations of new agreements and a possible transfer of operatorship in the near term.

Venezuela is highlighted as strategically important due to its large crude reserves and existing underinvestment, with OPEC estimating proven reserves at about 303 billion barrels, among the largest globally. ONGC noted that Venezuela’s newly enacted petroleum law offers fiscal incentives for resource development, which could improve the investment climate for foreign oil companies and their local partners. The company said its focus would be on shallow, onshore fields in Venezuela, leveraging experience from fields in India, and it expressed a bullish outlook for accelerated development once sanctions constraints ease.

Sanctions on Venezuela’s oil sector have historically complicated financial transactions, investments, and operations, which had limited ONGC’s involvement despite its long-standing presence. The renewed push comes as India seeks to diversify overseas oil resources amid geopolitical risk, and ONGC suggested a larger role in unlocking undeveloped hydrocarbon resources if it gains greater operational control.

---
Canonical: https://projectchintan.com/article/ongc-license-venezuela-operatorship-fdm62
Reported from: Multiple Sources