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Informist, Wednesday, Feb. 12, 2025

 

By Priyasmita Dutta and Afra Abubacker

 

NEW DELHI – ONGC Videsh Ltd.'s long wait to restart operations in Venezuela may finally come to an end with the Indian delegation to the US, led by Prime Minister Narendra Modi, set to plead for relaxation in restrictions on Venezuela in a meeting with new US President Donald Trump. A ONGC Videsh senior official Wednesday said the delegation will put in a fresh request to ease restrictions imposed by the US on Venezuela's oil exports.

 

"We are very hopeful that things will clear up soon," the official told Informist. Industry participants have put forward their concerns with Indian officials set to meet President Trump's administration, the official added.

 

ONGC Videsh, the overseas arm of state-owned Oil and Natural Gas Corp. Ltd., had planned to recover over $500 million in pending dividends from Venezuela by getting more crude oil and increasing production at its two projects in the Latin American country, both of which are operated by sanctions-hit Petroleos de Venezuela, SA.

 

The US first imposed restrictions on export of crude oil from Venezuela in 2019, under Trump's first term as president. The restrictions were eased in 2023 as the US issued a six-month general license to allow transactions in the oil and gas sector. ONGC Videsh's special plan was drawn up during this period. In April 2024, the US reimposed a ban on export of crude oil, except on some companies. The oil-rich country suffers severe economic delinquencies due to poor fiscal management, which is also the reason for US' sanctions against it.

 

Venezuela is an attractive source for crude oil for India as it offers cost benefits. The company official cited above said that economic environments change, and more importantly, ONGC Videsh's request is for a niche transaction mechanism rather than a blanket exemption. "Overall sanctions can continue to be in place...but OVL (ONGC Videsh) needs a solution to repatriate dividends," the official added.

 

The official's comments come a day after Petroleum and Natural Gas Minister Hardeep Singh Puri said that India may buy more oil from Venezuela as regulatory restrictions placed on the country are likely to be eased. "Both our public and private companies have had business relationships with Venezuela. But there were some payment issues. However, I am looking at it with great optimism to these issues getting resolved," Puri told the media at the India Energy Week event.  End

 

Edited by Ashish Shirke

 

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