ONGC targets operatorship of 2 Venezuelan oil projects within 6 months

India’s state-owned Oil and Natural Gas Corporation (ONGC) expects to secure operating rights for two Venezuelan oil projects within the next three to six months, as negotiations with Venezuelan and US authorities advance.

The proposed agreements would give ONGC a more direct role in managing production and selling crude oil from the San Cristobal and Carabobo 1 projects, where its overseas investment subsidiary, ONGC Videsh (OVL), already holds interests.

The development could also help address more than $500 million in outstanding dividends owed to OVL from its investments in the two projects. ONGC’s finance head, Anupam Agarwal, disclosed the expected timeline during an analyst call on 6 November 2026.

ONGC seeks full operatorship of San Cristobal oil project

ONGC expects to secure full operatorship of the San Cristobal project, in which it holds a 40% participating interest. Venezuela’s state-owned oil company, Petróleos de Venezuela (PDVSA), owns the remaining 60%.

Under the proposed arrangement, ONGC would move beyond its existing investor role to take responsibility for operating the project and marketing its oil production.

The change would provide the Indian company with greater direct involvement in the project’s operational and commercial activities.

For Carabobo 1, the proposed structure is different. ONGC is expected to participate in a joint operatorship arrangement with other investors rather than assume sole operational control.

ONGC and other Indian companies collectively hold an 18% interest in the Carabobo project, while Spain’s Repsol has an 11% stake.

More than $500 million in Venezuelan dividends remain pending

The recovery of outstanding dividends is an important financial consideration behind the proposed changes.

ONGC Videsh has more than $500 million in pending dividend payments associated with its interests in San Cristobal and Carabobo 1.

According to Agarwal, the outstanding dividend amounts will be adjusted once the new operatorship agreements are finalised.

The proposed arrangement would therefore address both the operational structure of the projects and the handling of accumulated financial dues.

For ONGC, securing operatorship could provide greater control over production and the commercialisation of output from assets in which it has already invested. However, the final terms and mechanisms for settling the outstanding dividends will depend on the agreements reached with the relevant authorities and project partners.

Proposed agreement could open opportunities in additional Venezuelan oilfields

The proposed operatorship agreements could have implications beyond the two existing projects.

Agarwal said the new arrangement includes a provision that could allow ONGC to acquire interests in additional Venezuelan oilfields.

This could provide the company with opportunities to expand its overseas upstream portfolio if further agreements are reached.

For India’s energy sector, the development also represents an opportunity for a state-owned exploration company to take a more direct operating role in international oil assets rather than relying solely on investment participation.

However, any expansion into additional fields will depend on commercial terms, regulatory approvals and the outcome of ongoing discussions.

ONGC reports Sakhalin-1 production at 183,000 barrels per day

Separately, Agarwal said production from Russia’s Sakhalin-1 oil and gas project averaged approximately 183,000 barrels per day between April and September 2026.

ONGC holds a 20% interest in the Russian project. The reported production level was similar to that recorded before Russia’s invasion of Ukraine in 2022.

The Sakhalin-1 update provides another indication of ONGC’s international upstream exposure, alongside its investments in Venezuela.

Together, the developments highlight the company’s continuing involvement in overseas oil and gas assets across different regions.

What ONGC’s Venezuela plans mean for India’s overseas oil operations

The proposed transfer of operatorship would represent a change in ONGC’s involvement in Venezuela, moving the company from a primarily investment-based position towards direct participation in field management and oil sales.

The outstanding dividend balance of more than $500 million adds a financial dimension to the negotiations, while the possibility of acquiring stakes in additional fields could create further opportunities for its overseas business.

The next important milestone will be the completion of the operatorship agreements, which ONGC expects within three to six months.

The final contractual arrangements will determine the extent of the company’s operational responsibilities, its ability to market production and the treatment of outstanding dividends.

For the international oil and gas industry, the development is worth watching as Indian state-owned energy companies seek greater operational involvement in overseas upstream assets.

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