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ONGC Expects Operatorship in Venezuela as Sanction Risks Ease

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India's state-run Oil and Natural Gas Corp. expects new agreements to be signed soon allowing it to take over operatorship of its Venezuelan projects from PDVSA, as the company turns upbeat on the South American nation following eased sanction risks.

Speaking on an earnings call Wednesday, ONGC Finance Director Anupam Agarwal stated that operations in the country are no longer restricted by sanction related risks.

"We are very upbeat on for Venezuela, and we believe very soon we will see some positive development, the new agreement signed, and we taking over the operatorship for some of those projects from PDVSA," Agarwal said.

Through its overseas investment arm, ONGC Videsh, the company holds a 40% stake in the San Cristobal field and an 18% stake in the Carabobo-1 project alongside other Indian firms.

Agarwal noted that Venezuela, home to the world's largest oil and gas reserve, is offering fresh incentives under its new petroleum law.

He added that ONGC possesses full expertise for these shallow-depth onshore fields, matching the geology of its domestic projects in Mehsana and Ahmedabad.

Meanwhile, ONGC also highlighted positive developments regarding its international portfolio, noting that reclaiming its 20% stake in Russia's Sakhalin-1 project has boosted its quarterly revenue contribution from the asset.

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