Venezuela Oil Sector Shifts To US control, Impact On India
- Venezuela oil sector control raises questions for Indian oil firms
- Venezuela oil sector changes may help ONGC Videsh recover dues
The Venezuela oil sector has moved under American control after the United States took Venezuelan President Nicolas Maduro into custody. US President Donald Trump also announced this development. As a result, the country’s oil sector will now come under US oversight. This has raised questions about whether the move will benefit India or lead to losses for Indian interests.
However, experts quoted in the input say these developments could benefit Indian oil companies. They believe India may recover large pending dues linked to oil projects in Venezuela. Analysts also say crude oil production could rise in fields where Indian companies operate. Earlier, Venezuela was India’s largest oil importer. India once imported more than four lakh barrels of oil per day from Venezuela. However, in 2020, the US imposed sanctions on Venezuela. Because of these sanctions, India stopped buying oil from the country.
India’s ONGC Videsh operates the San Cristobal oil field in eastern Venezuela. However, US sanctions reduced oil production at this field. The input states that the region holds huge reserves, but India is not using them at present. ONGC Videsh holds a 40 percent stake in San Cristobal. Venezuela failed to pay dividends of $536 million, or about Rs. 4,800 crore, to ONGC Videsh until 2014. Later, the settlement of claims stalled because the company did not receive permission for the audits required to release the payments.
If US sanctions on Venezuela are lifted, ONGC Videsh could move rigs and equipment from ONGC’s oil fields in Gujarat to San Cristobal. Officials say this could restore oil production by up to 10 percent. The input notes that production had dropped to between 5,000 and 10,000 barrels per day. Meanwhile, analysts say India could recover nearly $1 billion, or about Rs. 9,000 crore, in arrears from this project.
The input also refers to other Indian stakes in Venezuela. ONGC has an 11 percent stake in the Carabobo 1 field. IOC and Oil India hold 3.5 percent each. Venezuela’s state-run PDVSA remains the majority shareholder.
Meanwhile, the Global Trade Research Initiative says the impact of US-Venezuela developments on India’s trade will be limited. India’s crude imports from Venezuela fell by 81.3 percent in 2024–25. During the same period, imports stood at $364.5 million, while exports were $95.3 million. Experts say this will not significantly affect India’s economy.
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