ONGC Videsh Limited (OVL) is in advanced stages of discussion with the US for waiver to regain control of oil fields from Venezuala, Managing Director Rajarshi Gupta at a company event on August 30.
The overseas arm of ONGC has dividends stuck to the tune of $600 million for the stake it holds in Venezuelan projects.
OVL has stake in two fields in Venezuela, namely, San Cristobal and Carabobo-1 but its dividends have been stuck due to US sanctions against the country.
OVL has also applied to the US for a ‘specific license’ to be the lead operator for these fields and is awaiting their response.
The current total production from the two fields in Venezuela is 12,000 barrels per day (bpd) and is expected to reach 45,000 bpd in four to five years, the official said.
Regarding the company’s dividend stuck in Russia, Gupta said the company expects a decision shortly.
According to media reports last year, Indian oil companies are exploring the possibility of using close to $600 million of their dividend income stranded in Russia to buy oil from that country.
India’s top four oil companies — Indian Oil Corporation (IOC), a unit of Bharat Petroleum Corporation Ltd, Oil India Ltd and ONGC Videsh Ltd — haven’t been able to repatriate dividend income they accrue from their investments in Russian oil and gas fields. That money is lying in their bank accounts in Russia but could not be brought to India due to tough Western sanctions that followed Moscow’s invasion of Ukraine.