ONGC seeks US exemption to take over Venezuelan oilfields' operations
ONGC is seeking US exemption to get operational control of its fields in sanctions-hit Venezuela, a top executive said, adding that the Latin American country has already agreed to it in principle.
ONGC has stakes in two Venezuelan oil fields — Sancristobal and Carabobo-1 — but has been unable to receive its share of income for years, first due to enduring financial troubles in the Latin American country and then the imposition of the US sanctions that blocked oil trade and payment channels. ONGC hasn’t been able to repatriate about $500 million of dividends from Venezuela.
In both fields, the Venezuelan state firm PDVSA has the majority stake and controls the operation and finances of the fields even though ONGC is technically the joint operator.
Venezuela has now agreed to give away operational control of these fields to ONGC although formal agreements in this respect are yet to be signed and will depend on exemptions from the US sanctions, ONGC Videsh managing director Rajarshi Gupta said.
ONGC has also applied to the US authorities for a specific license to operate these fields under the so-called “Chevron model”, Gupta said. US oil major Chevron already operates fields in Venezuela following a license from the US. This license allows the operator to use US channels of payments and other services needed for operation.
Gupta said ONGC’s application for a license is in the advanced stages of consideration by the US government. If the plan takes off, ONGC executives will take over key operational and financial
