India’s energy giant seeks full operational control of PDVSA assets to recover dividends and boost global crude production.

ONGC pursues US approvals to acquire PDVSA’s stakes and assume control over key Venezuelan oilfields.

India’s strategic pursuit of energy security now focuses heavily on South American reserves. Oil and Natural Gas Corporation seeks broader control over Venezuelan oilfields. The company aims to acquire significant stakes in the state-run entity PDVSA.

However, this ambitious acquisition requires explicit approval from the US Treasury Department. Washington currently maintains strict oversight over the Venezuelan oil sector. Foreign energy corporations must secure official authorisations to manage local operations.

ONGC Videsh already holds a 40 per cent interest in the San Cristobal field. The Indian firm also owns an 11 per cent stake in the Carabobo-1 asset. PDVSA currently controls the remaining majorities across these specific South American locations.

ONGC wants to become the sole operator at San Cristobal. Additionally, it plans to operate Carabobo jointly with Spain’s Repsol. These initiatives would require clearing considerable diplomatic and regulatory hurdles.

The US has previously granted operating licences to global giants like Chevron and Shell. Thus, ONGC remains optimistic about receiving similar regulatory clearance shortly. Meanwhile, production across these Venezuelan fields has experienced severe historical declines.

Economic mismanagement and historical sanctions heavily impacted PDVSA’s operational capabilities. Industry insiders note that ONGC demanded greater financial control before investing further. Company leadership previously indicated that output could double within a single year.

Specifically, production could reach 30,000 barrels per day following a successful takeover. Ultimately, this expansion could help recover over $500 million in long-stuck dividends. India has recently emerged as a primary buyer of Venezuelan crude oil. Therefore, securing these upstream assets perfectly aligns with national energy strategies.

(Source: Energy World)

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