Oil and Natural Gas Corporation's (ONGC).
Credit: Reuters Photo
New Delhi: India's ONGC Videsh Ltd (OVL) is seeking U.S. approval to operate two projects in sanction-hit Venezuela to boost output, its managing director Rajarshi Gupta said on Friday.
ONGC is seeking specific licenses similar to the one awarded to U.S. oil major Chevron to operate oil fields in Venezuela, Gupta added.
"We have made a request for a specific license that allow us to operate our two projects. Approval will give us exemption from sanctions and allow us to use US entities, US dollars, US banking channels, etc. for operating the projects," Gupta said.
An approval would enable the company to manage the finances of its Venezuelan projects and help it recover a pending dividend of more than $500 million, he said.
Venezuela has allowed ONGC to operate the San Cristobal project, while for the Carabobo 1 field, ONGC is in talks with Spanish firm Repsol for joint operatorship, he said.
ONGC Videsh, the overseas investment arm of India's top explorer Oil and Natural Gas Corp, holds a 40 per cent stake in the San Cristobal project.
In the Carabobo project, along with other Indian companies, it holds an 18% stake while Spain's Repsol has an 11 per cent stake. Venezuela's national oil company, PDVSA, holds the remaining stakes in both projects.
Gupta said that the two assets produce about 12,000-15,000 barrels per day (bpd) oil that can be raised to about 30,000 bpd in a year's time, and to about 50,000 bpd in a few years.
Additionally, the MD expressed hope that OVL would soon receive approval from Russian authorities to pay its $600 million share in roubles for the Sakhalin-1 project's abandonment fund. This approval is necessary for OVL to retain its 20 per cent stake in the project in the Russian Far East.
Gupta said OVL wants to use some $250 million pending dividend from its stake in the Russian oil project as part-payment for its share in the abandonment fund in roubles.