Oil and Natural Gas Corporation Seeks Venezuela Oil Block Control

The Oil and Natural Gas Corporation (ONGC) is seeking to take over operatorship of two shallow onshore oil blocks in Venezuela from the state-run Petroleos de Venezuela SA. Through its overseas investment arm, ONGC Videsh Ltd., the Indian energy company aims to gain control of the San Cristobal field, where it holds a 40% stake, and the Carabobo-1 block, where it maintains an 18% stake.

This strategic move follows the acquisition of a license from the U.S. Office of Foreign Assets Control, which grants the company freedom to operate despite sanctions. The effort coincides with new Venezuelan petroleum regulations that allow private companies to operate across the value chain. These legal shifts occurred after the United States kidnapped President Nicolas Maduro in January and pressured Caracas to amend its legal framework.

Chief Financial Officer Anupam Agarwal stated that the company's technical expertise in Gujarat, India, makes it capable of managing these projects. The pursuit of Venezuelan oil aligns with India's broader goal to diversify energy supplies amid conflicts in the Middle East and potential U.S. tariffs on Russian oil imports. Acting President Delcy Rodríguez welcomed the increased Indian participation in the sector.