en.Wedoany.com Reported - ONGC Videsh Ltd (OVL), the overseas subsidiary of India's state-owned Oil and Natural Gas Corporation (ONGC), is planning to restart production at its two onshore oil assets in Venezuela. This comes as the world's largest holder of crude oil resources is reopening its oil industry to foreign companies.
Despite still expecting to receive approximately $900 million in dividends from Petróleos de Venezuela, S.A. (PDVSA) (corresponding to its stake in these two oil concession assets), OVL has decided to resume operations in Venezuela. OVL holds minority stakes in two onshore concession areas in Venezuela: one in San Cristobal in the Orinoco Belt, and the other in Petrocarabobo in Eastern Orinoco. PDVSA holds majority stakes in both assets, with OVL owning 40% of San Cristobal and 11% of Petrocarabobo.
A senior industry executive told the Economic Times that Venezuela's economic conditions are now suitable for operations, all oil field operators are returning, and OVL is reassessing the situation. The San Cristobal asset is at a more advanced planning stage, and the Indian company is expected to draft a recovery and restart plan for both fields in the coming months.
Since taking over Venezuela's oil sales in January, the United States has eased sanctions and encouraged foreign companies to invest in the country. Last week, the U.S. Treasury Department relaxed several key general licenses for operations in Venezuela, allowing more commercial activities, but has not yet fully lifted sanctions. The new guidelines ease some commercial restrictions in areas including oil, gas, and mining extraction.
India's top energy official, Hardeep Singh Puri, stated during a meeting last week with Venezuela's interim President Delcy Rodriguez that Indian energy companies are interested in expanding into Venezuela's oil sector. Currently, Venezuela has returned to the international market, with its oil sales controlled by the United States and marketed by top commodity traders such as Vitol and Trafigura. With shipments to the U.S. and India surging, Venezuela's oil exports in May hit a seven-year high.
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