Article

Indian upstream investors, including Oil and Natural Gas Corp. (ONGC), Oil India Ltd., and Indian Oil Corp., are optimistic that partial sanctions relief could allow for dividend recovery and restructuring of joint ventures in Venezuela.

Since entering the Venezuelan market in 2008, ONGC Videsh holds a 40% interest in the San Cristobal project and 11% in the Carabobo-1 project. As of March 31, 2025, ONGC's investment in Venezuela totaled approximately $770 million, with production from these projects remaining low at 1,870 b/d and 970 b/d, respectively.

The geopolitical risks and sanctions have significantly affected operational capabilities. Analysts suggest that while partial sanctions relief could aid in recovery, a comprehensive political reset is necessary for expansion, requiring substantial capital investment. Indian companies are expected to adopt a cautious approach, focusing on risk mitigation.