State-owned Oil and Natural Gas Corp (ONGC) has secured a licence from the US Treasury’s Office of Foreign Assets Control (OFAC), allowing it to resume full operations in Venezuela after years of limiting activity because of sanctions-related risks, a senior company official said.
The US approval removes a key hurdle for ONGC’s Venezuelan investments and could pave the way for the state-run explorer to expand production, sign new agreements and take over operatorship of some projects from Venezuela’s state oil company PDVSA, Anupam Agarwal, director-finance at ONGC, said at an investor call post first quarter earnings announcement.
“Now we have full freedom to work on the Venezuela project because earlier we were restricting our operations there because of the sanction-related risks. Those risks are behind us,” Agarwal said.
ONGC Videsh Ltd, the company’s overseas investment arm, holds a 40 per cent interest in the San Cristobal oil project, while the remaining is with Venezuela’s .
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