India's Oil & Natural Gas Corp. sent a team to Venezuela to review assets in the country after the US Treasury granted the company a sanctions exemption, according to people familiar with the matter. The overseas investment arm of ONGC received an Office of Foreign Assets Control license on August 16, clearing the way for renewed operations in the South American country.
The asset review marks ONGC's first direct engagement with its Venezuelan holdings since US sanctions on the country tightened. The company holds stakes in multiple oil projects in Venezuela, where proven reserves exceed 300 billion barrels. The OFAC exemption removes the legal bar that had prevented ONGC from managing or developing those interests, though broader US sanctions on Venezuela's government and state oil company Pdvsa remain in place.
ONGC has held Venezuelan assets for more than two decades, building significant operational experience in the country's heavy crude fields. The company operates through its subsidiary ONGC Videsh, which manages international oil and gas projects across Africa, Southeast Asia, and Latin America. Venezuela's oil output has collapsed from 3 million barrels per day in the 1990s to roughly 750,000 barrels per day in 2026, creating both risks and opportunities for investors willing to operate under US restrictions.
The exemption allows specific foreign energy companies to work in Venezuela under controlled conditions, a departure from the broader sanctions regime imposed since 2017. India's government has maintained diplomatic and energy ties with Venezuela despite US pressure, positioning ONGC as one of the few major international operators capable of functioning under these constraints.
ONGC's return to active asset management in Venezuela comes as global energy markets remain sensitive to supply disruptions. The company's ability to assess field conditions and project economics will determine whether it pursues new investment or seeks to optimize existing operations. A functioning sanctions exemption removes a key barrier, but operational and security challenges in Venezuela remain substantial.
ONGC received its license roughly two weeks before the asset review team arrived on the ground. The company is expected to publish findings from the review within 60 days, according to one person briefed on the timeline, though no formal deadline has been announced. If ONGC moves to resume operations at scale, the company would need to secure additional regulatory approvals from both Washington and New Delhi, a process that could extend through late 2026.
