ONGC clarifies report on OVL’s Venezuela operations, says framework talks underway

retained text

State-owned Oil and Natural Gas Corporation (ONGC) has clarified reports regarding the resumption of its overseas subsidiary ONGC Videsh Limited’s (OVL) oil and gas operations in Venezuela, saying the company is pursuing the required authorization from the U.S. Office of Foreign Assets Control (OFAC).
In a clarification to the stock exchanges on August 18, ONGC said OVL has two assets in Venezuela — San Cristobal and Carabobo — and has been pursuing Office of Foreign Assets Control (OFAC) authorization for oil and gas operations in the country.
ONGC said the required approval was received from the U.S. government in July 2026. Framework agreements for determining the further course of action for both assets are currently under discussion with relevant stakeholders, it added.
The clarification follows a report published on August 16 stating that ONGC had received a U.S. licence to resume full operations in Venezuela.
ONGC, however, said no material movement had been noticed in its share price following the development. The company also said that the operational or financial impact of the development could not be determined at this stage and, accordingly, no disclosure had been submitted to the stock exchanges.
The development could pave the way for OVL to advance discussions concerning its Venezuelan assets, subject to the applicable regulatory approvals and completion of the framework arrangements with relevant stakeholders.
Venezuela is strategically important for ONGC because it holds the world's largest proven crude oil reserves, estimated by OPEC at about 303 billion barrels, more than those of Saudi Arabia.
Much of the country's production potential remains constrained by years of underinvestment, sanctions, and operational difficulties, leaving substantial scope for additional development.
ONGC Videsh Ltd, the company's overseas investment arm, holds a 40% interest in the San Cristobal oil project, while the remaining 60% is held by Venezuela's Petroleos de Venezuela S.A. (PDVSA).
OVL invested in Venezuelan oil assets through joint ventures, but sanctions imposed by Washington on Venezuela's oil sector have periodically restricted the scope of operations and dealings with PDVSA.
(With inputs from PTI)
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.

document fetched 2026-08-19 06:46 · canonical https://livemint.com/market/stock-market-news/ongc-clarifies-report-on-ovl-s-venezuela-operations-says-framework-talks-underway-11787052167540.html