India's ONGC Seeks US Approval to Operate Two Projects in Venezuela
09.02.2024 By Tank Terminals - NEWS

September 02, 2024 [Reuters]- India’s ONGC Videsh Ltd (OVL) is seeking U.S. approval to operate two projects in sanction-hit Venezuela to boost output, its managing director Rajarshi Gupta said on Friday.

 

ONGC is seeking specific licenses similar to the one awarded to U.S. oil major Chevron to operate oil fields in Venezuela, Gupta added.

“We have made a request for a specific license that allow us to operate our two projects. Approval will give us exemption from sanctions and allow us to use U.S. entities, U.S. dollars, U.S. banking channels, etc. for operating the projects,” Gupta said.

An approval would enable the company to manage the finances of its Venezuelan projects and help it recover a pending dividend of more than $500 million, he said.

Venezuela has allowed ONGC to operate the San Cristobal project, while for the Carabobo 1 field, ONGC is in talks with Spanish firm Repsol for joint operatorship, he said.

ONGC Videsh, the overseas investment arm of India’s top explorer Oil and Natural Gas Corp holds a 40% stake in the San Cristobal project.

In the Carabobo project, along with other Indian companies, it holds an 18% stake while Spain’s Repsol has an 11% stake. Venezuela’s national oil company, PDVSA, holds the remaining stakes in both projects.

Gupta said that the two assets produce about 12,000-15,000 barrels per day (bpd) oil that can be raised to about 30,000 bpd in a year’s time, and to about 50,000 bpd in a few years.

Additionally, the MD expressed hope that OVL would soon receive approval from Russian authorities to pay its $600 million share in roubles for the Sakhalin-1 project’s abandonment fund. This approval is necessary for OVL to retain its 20% stake in the project in the Russian Far East.

Gupta said OVL wants to use some $250 million pending dividend from its stake in the Russian oil project as part-payment for its share in the abandonment fund in roubles.

 

Free Trial: Access 13,300 Tank Terminal and Production Facilities

13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

BP Partners with Palantir for AI Tech
11.21.2024 - NEWS
November 21, 2024 [Tank Storage]- Palantir Technologies and BP have announced an enterprise agree... Read More
Aramco, Rongsheng Petrochemical Ink Deal to Progress Saudi Refinery Project
11.20.2024 - NEWS
November 20, 2024 [Rigzone]- Saudi Arabian Oil Co. (Aramco) and Rongsheng Petrochemical Co. Ltd. ... Read More
Stolthaven Terminals Expands in Malaysia to Boost Efficiency and Capacity For Customers
11.20.2024 - NEWS
November 20, 2024 [Stolt-Nielsen]- Stolthaven Westport held an event earlier this month to celeb... Read More
Open Season For CHANE’S Rotterdam Ammonia Import Terminal Development
11.20.2024 - NEWS
November 20, 2024 [Storage Terminals Magazine]- Chane has announced the next phase of decision-ma... Read More