India's state-owned Oil and Natural Gas Corp. (ONGC) is in advanced talks to assume operational control of two Venezuelan oil projects, with agreements expected to be finalized within three to six months. The move comes as ONGC seeks to address outstanding dividend payments and gain full operatorship of the San Cristobal field. ONGC Videsh, the company's overseas arm, is engaging with Venezuelan and U.S. authorities to facilitate the transition.
Currently, ONGC holds a 40% stake in the San Cristobal project, with Venezuela's state oil company PDVSA owning the remaining 60%. The proposed agreement would see ONGC take charge of operations and marketing, while resolving the dividend dispute. At the Carabobo 1 project, ONGC and other Indian firms hold a combined 18% stake, with Spain's Repsol owning 11%. The deal could also open the door for ONGC to acquire interests in additional Venezuelan fields.
The negotiations coincide with Venezuela's efforts to revive its oil sector, which has suffered from years of underinvestment and operational challenges. Companies like Chevron, Eni, and Repsol have also expanded their roles in the country. Rystad Energy forecasts Venezuela could produce up to 1.8 million barrels per day by 2030, but achieving this will require significant investment and a substantial increase in drilling activity. As of August, only two rigs were operational in the country, far below the 50 needed by 2028.
Despite the potential for growth, rebuilding Venezuela's oil infrastructure remains a formidable task. The success of ONGC's bid will depend on the ability to secure long-term investment and operational support. The deal could signal a shift in the region's energy landscape, with Indian firms playing a more prominent role in Venezuela's oil recovery efforts.