India's ONGC seeks US approval to operate two projects in Venezuela
By Nidhi Verma
NEW DELHI, Aug 30 (Reuters) -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 CVX.N 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 U.S. entities, U.S. dollars, U.S. 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 REP.MC for joint operatorship, he said.
ONGC Videsh, the overseas investment arm of India's top explorer Oil and Natural Gas Corp ONGC.NS, holds a 40% 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% 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% 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.
Reporting by Nidhi Verma in New Delhi; Editing by Vijay Kishore
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.