ONGC considers oil as an option to recover $600 million from the Venezuelan dividend

ONGC Videsh, the overseas investment arm of India’s Oil and Natural Gas Corp., is actively considering alternatives, including the allocation of oil by Venezuela’s state oil company, PdVSA, to reclaim its outstanding $600 million dividend. This dividend is tied to OVL’s 40% stake in the San Cristobal field, located in the Orinoco Heavy Oil Belt of eastern Venezuela, with PdVSA retaining the remaining stake.

Indian refiners have recently resumed the purchase of Venezuelan oil, seizing the opportunity presented by the relaxation of U.S. sanctions on the South American nation in 2023.

The San Cristobal project, in which OVL has a significant stake, is accountable for the pending dividend of approximately $600 million. In response to inquiries, the company stated that it is in continuous dialogue with PdVSA for the recovery of accrued dividends by various mechanisms, including the allocation of crude cargoes in lieu of accrued dividends.

This development underscores the ongoing efforts by ONGC Videsh to explore viable options and engage with PdVSA to address the financial implications of its stake in the Venezuelan project, reflecting the evolving dynamics in the international oil market.