New Delhi: A US-led takeover or restructuring of Venezuela’s oil sector could directly benefit India by unlocking nearly $1 billion in long-pending dues and reviving crude output from fields operated by Indian firms in the sanctions-hit nation, analysts and industry sources said.
India was once a major buyer of Venezuelan heavy crude, importing over 400,000 barrels per day (bpd) at peak levels, before sweeping US sanctions halted purchases in 2020. ONGC Videsh Ltd (OVL), India’s flagship overseas explorer, jointly operates the San Cristobal oilfield in eastern Venezuela, but production has been sharply curtailed due to restrictions on technology, equipment and services.
Venezuela owes OVL $536 million in unpaid dividends on its 40 per cent stake in San Cristobal up to 2014, along with a similar amount for subsequent years, for which audits have not been permitted. Analysts said easing of sanctions following a US intervention that placed Venezuela’s oil sector under American oversight could allow OVL to recover these dues from renewed exports.
Officials said OVL could quickly redeploy rigs and equipment—such as those used by parent ONGC in Gujarat—to lift San Cristobal’s output from the current 5,000–10,000 bpd to as much as 80,000–100,000 bpd.
Indian firms could also expand activity in the Carabobo-1 heavy oilfield, where OVL, Indian Oil Corporation and Oil India hold minority stakes. Analysts expect Venezuela’s state oil firm PdVSA to undergo restructuring, but existing international partners, including OVL and Spain’s Repsol, are likely to retain their interests. US President Donald Trump has said American oil majors would return to refurbish Venezuela’s degraded infrastructure, though analysts note Washington will still need international partners and buyers such as India.
Major Indian refiners are well equipped to process Venezuelan heavy crude. If sanctions are eased, Venezuelan barrels could quickly return to Indian refineries, diversifying India’s crude basket, improving supply security and strengthening its negotiating position in global oil markets, analysts said.