ONGC gets US waiver to resume full Venezuela operations

State-run Oil and Natural Gas Corp (ONGC) has secured a licence from the US Treasury's Office of Foreign Assets Control (OFAC) that allows it to resume full operations in Venezuela, ending years of activity limited by sanctions. The approval removes a key hurdle for ONGC's Venezuelan investments, director-finance Anupam Agarwal told an investor call, saying the company now has full freedom to work on its projects there. ONGC is already in talks with Venezuelan authorities and joint-venture partners over its interests in the San Cristobal and Carabobo projects.

The OFAC licence will enable ONGC to manage the finances of its Venezuelan projects and help it recover a pending dividend of over USD 500 million, Agarwal said. Venezuela's newly enacted petroleum law provides additional fiscal incentives for resource development, potentially improving the investment environment. ONGC's focus is on shallow onshore fields in Venezuela, where it has relevant operating expertise from its domestic fields in Mehsana and Ahmedabad. The company expects positive developments soon, including new agreements and a possible transfer of operatorship from Venezuela's state oil company PDVSA.