India’s Oil and Natural Gas Corporation has secured a license from the U.S. Office of Foreign Assets Control to return to Venezuela, Indian media have reported.

India’s largest oil and gas company has a 40% stake in the San Cristobal oil project and an 11% stake in the Carabobo project but was forced to curb activity significantly amid a barrage of U.S. sanctions on the South American country.

ONGC’s return to Venezuela could open up access to over $500 million in outstanding dividends from its stakes in the two oil projects. The company is currently in talks with Venezuela’s government, which could end with new partnership deals seeing ONGC take over the operatorship of San Cristobal and Carabobo, which is under development.

Earlier this month, Reuters quoted ONGC’s finance director as saying the company’s overseas arm, ONGC Videsh, now had “full freedom” to pursue opportunities in Venezuela following the easing of sanctions-related constraints that had previously limited its activities.

Venezuela’s new petroleum law offered additional incentives for foreign investors, Anupam Agarwal also said, adding that he was confident that agreements transferring operatorship of some projects from PDVSA could be finalized soon.

India has been buying more crude from Russia, Brazil, and Venezuela to replace lost Middle Eastern barrels amid the continuing blockade of the Strait of Hormuz. The world’s third-largest oil importer has also stepped up buying from Africa’s export majors, Nigeria and Angola, to meet demand. India has come to depend on imports of crude for as much as 90% of consumption.

Earlier in the year, India became the second-largest buyer of Venezuelan crude, after the United States, with shipments reaching 427,000 barrels daily in May. This was a twofold increase on April volumes, Reuters reported in June. Kpler said in June it expected Venezuela’s total exports to hit 1.5 million barrels daily in 2027, up from 1.25 million barrels daily in May.

Source: Oilprice