ONGC receives OFAC license to continue full operations in Venezuela
The reports further said that the U.S. 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, the overseas investment arm of ONGC, owns a 40% stake in the San Cristobal oil project, with the remaining interest held by Venezuela?s state-owned oil company, Petroleos de Venezuela S.A. (PDVSA). The company also has an 11% interest in the Carabobo oil project, which is currently under development.
An OFAC licence would allow ONGC Videsh to undertake financial transactions related to its Venezuelan assets and could facilitate the recovery of more than $500 million in pending dividends from its operations in the country.
ONGC is currently engaged with Venezuelan authorities and its joint-venture partners regarding its interests in the San Cristobal and Carabobo projects. The company expects progress on these discussions, including the possibility of entering into new agreements and potentially taking over operatorship of the projects from PDVSA.
The potential licence is important for ONGC as US sanctions on Venezuela?s oil industry have restricted financial transactions, investments and operational activities involving Venezuelan oil assets for several years. These restrictions have consequently limited ONGC?s ability to fully utilise its longstanding investments in the country.
Venezuela remains strategically significant for ONGC given its world-leading proven crude oil reserves of around 303 billion barrels, according to OPEC. However, years of underinvestment, sanctions and operational challenges have constrained the country?s production capacity, leaving significant potential for increased output and further development of its oil assets.
Maharatna ONGC is the largest crude oil and natural gas company in India, contributing around 71% to Indian domestic production. It has in-house service capabilities in all areas of exploration and production of oil & gas and related oil-field services. The Government of India held a 58.89% stake in ONGC as of December 2025.
The corporation had reported a 112.3% jump in standalone net profit to Rs 17,033.81 crore for the quarter ended 30 June 2026 (Q1 FY27), compared with Rs 8,024.23 crore in the corresponding quarter of the previous fiscal. Revenue from operations jumped 45.2% YoY to Rs 46,460.45 crore in the quarter ended 30 June 2026.
The scrip rose 0.40% to currently trade at Rs 237.35 on the BSE.
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