ONGC Videsh, the international investment arm of India's Oil and Natural Gas Corporation (ONGC), has successfully obtained a license to operate upstream oil and gas projects in Venezuela. This significant development, confirmed by ONGC Chief Financial Officer Anupam Agarwal during the company's recent earnings call, marks a crucial step in India's ongoing efforts to diversify its energy sources.
Strategic Focus on Venezuelan Reserves
Agarwal stated that ONGC Videsh is actively seeking partners for these upstream projects in the South American nation, emphasizing Venezuela as a key focus area for the company. The move comes as India seeks to enhance its energy security amidst global geopolitical tensions and supply chain disruptions.
Venezuela boasts the world's largest proven oil reserves and has historically been a significant crude oil supplier to India. India's refining sector is particularly well-suited to process Venezuela's heavy crude, making the country a natural strategic partner.
Deepening India-Venezuela Energy Relations
This development follows a high-profile visit to India by Venezuela's Acting President Delcy Eloína Rodríguez Gómez in June. During her visit, Indian Petroleum and Natural Gas Minister Hardeep Singh Puri reiterated India's commitment to supporting Venezuela's energy sector and expressed interest in expanding energy trade. Rodríguez, in turn, extended an invitation for Indian companies to participate in Venezuela's reformed oil and gas sector and encouraged an Indian delegation to explore further collaboration opportunities.
Growing Imports and Existing Investments
As part of its energy diversification strategy, India has been strengthening its ties with Venezuela, particularly as imports from the Gulf faced disruptions. Government data indicates a substantial increase in India's average monthly crude imports from Venezuela, rising from 64.027 thousand metric tonnes (TMT) in FY 2025-26 to 1,047.148 TMT during April-May of FY 2026-27.
Indian public sector companies have maintained a presence in Venezuela's upstream oil sector since 2008, with investments totaling approximately $1 billion in the San Cristóbal and Petrocarabobo-1 projects within Venezuela's Orinoco Belt. ONGC Videsh is reportedly in discussions with Venezuelan authorities regarding further investments in these existing joint venture projects.