India's ONGC negotiates to take over two Venezuelan oil projects

· Oil & Gas · India · Venezuela

India's state-owned Oil and Natural Gas Corp. (ONGC) is negotiating to take over operations at two Venezuelan oil projects within six months, a move that could give it control over production and sales at fields where it is owed more than $500 million in dividends. The company's overseas arm, ONGC Videsh, is in advanced talks on the takeover. Gaining operational control would let ONGC influence how output and revenue are handled at assets where it has long-standing financial claims. The potential deal marks a notable step by an Indian state firm to convert unpaid dividends into operational control of upstream assets abroad.

Why it matters：State oil companies converting unpaid dividends into operating control abroad is a notable model for recovering stranded claims in sanctioned or distressed producing countries.

Key points

  • ONGC is negotiating to take over operations at two Venezuelan projects within six months
  • It is owed more than $500 million in dividends at the fields
  • Overseas arm ONGC Videsh is in advanced talks

Sources (original reporting)

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