- ONGC is set to take over operatorship of two Venezuelan oil projects from PDVSA, reviving its operations after sanctions eased, which is expected to boost its overseas growth.
- In December 2025, ONGC regained its 20% stake in Sakhalin-1 after a four-year gap, significantly increasing its profits.
- ONGC has secured a licence from the US Office of Foreign Assets Control and is engaging with Venezuelan authorities to facilitate its operations.
- ONGC expects to sign new agreements under Venezuela's new petroleum law, which offers additional fiscal incentives for hydrocarbon development, and take over operatorship from PDVSA soon.
- ONGC Videsh holds a 40% stake in the San Cristobal field and an 18% interest in the Carabobo-1 project, which are currently operated by PDVSA.
- Sanctions had previously constrained ONGC's operations in Venezuela, but the easing of these restrictions has allowed the company to pursue new opportunities.
- ONGC began recognizing its stake in Sakhalin-1 in its profit and loss account from January 2026, following the restoration of its stake.
India's ONGC is on the verge of taking over two oil projects from Venezuela's state-owned PDVSA, marking a significant shift in its overseas operations following the easing of U.S. sanctions.12345678
ONGC's Finance Director Anupam Agarwal stated, "Now we have full freedom to work on the Venezuela projects. Earlier, we were restricting our operations there because of the sanctions-related risk," highlighting the company's renewed confidence in the region.
The new petroleum law in Venezuela offers additional fiscal incentives, which ONGC expects will facilitate the transfer of operatorship. Currently, ONGC Videsh holds a 40% stake in the San Cristobal field and an 18% interest in the Carabobo-1 project.
The company has also regained its 20% stake in Russia's Sakhalin-1 project, which has significantly boosted its profits, with quarterly earnings now exceeding ₹1,000 crore compared to ₹500-600 crore previously.
However, ONGC cautioned that revenue from Russian assets remains constrained due to geopolitical conditions.
The Venezuelan oil projects are crucial as they tap into the world's largest proven crude oil reserves, and ONGC's operational control is expected to enhance its international footprint.
As Agarwal noted, “We believe very soon we will see some positive developments, the new agreements signed, and we are taking over the operatorship for some of those projects from PDVSA.”
“ONGC Videsh holds a 40% stake in San Cristobal and 18% in Carabobo-1, with assets currently operated by PDVSA. The restored Sakhalin-1 stake doubled quarterly revenue to about ₹1,000 crore, from ₹500-600 crore earlier.”
Crude Oil Prices Today | OilPrice.com
