New Delhi: A potential US-led takeover or restructuring of Venezuela’s oil sector could deliver significant gains for India, including the recovery of nearly $1 billion in long-pending dues and the revival of crude production from oilfields operated by Indian companies, reports said.
India was once a major buyer of Venezuelan heavy crude, importing over 400,000 barrels per day at peak levels before US sanctions forced refiners to halt purchases in 2020.
Sanctions also severely impacted the operations of ONGC Videsh Ltd (OVL), which holds a 40 per cent stake in the San Cristobal oilfield, leaving large reserves stranded due to a lack of access to equipment and technology.
Venezuela has failed to pay OVL about $536 million in dividends up to 2014, with a similar amount pending for later years, as audits were blocked. Industry executives said easing of sanctions following a reported US intervention could allow OVL to deploy rigs and equipment, potentially lifting output from the current 5,000-10,000 barrels per day to as much as 100,000 barrels per day.
Resumption of exports could enable recovery of dues through future revenues. Indian firms also hold stakes in the Carabobo-1 field, alongside Venezuela’s state-run PdVSA, which may undergo restructuring.
Analysts said renewed Venezuelan supplies would provide Indian refiners with a strategic alternative, reduce supply risks and enhance pricing leverage amid efforts to diversify crude imports.
