India's Venezuela push: What's driving interest in oil fields, not just crude cargoes?

As India ramps up crude oil imports from Venezuela, New Delhi is now looking beyond simply buying oil. Indian companies are exploring opportunities in Venezuela’s oil and gas sector, including upstream oil fields and downstream energy projects, signaling a deeper energy partnership between the two countries.

The development comes at a time when India is seeking to diversify its crude oil sources amid geopolitical uncertainties in West Asia and concerns over supply disruptions through the Strait of Hormuz. 

Why Venezuela matters 

Venezuela holds the world's largest proven oil reserves, estimated at more than 300 billion barrels—greater than those of Saudi Arabia. However, years of economic turmoil, underinvestment, sanctions, and political instability sharply reduced its oil production. 

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Now, with sanctions easing and foreign investment returning, Venezuela's oil industry is staging a comeback. The country exported about 1.25 million barrels of crude per day in May 2026, its highest level in years. Exports were up 61% compared to a year earlier. 

India has emerged as a key buyer in this revival. 

India's Venezuelan oil imports rising 

India was the second-largest importer of Venezuelan crude in May 2026, purchasing around 427,000 barrels per day. Only the United States imported more. Indian refiners have increasingly turned to Venezuelan heavy crude because it is often available at competitive prices and helps diversify supply sources. 

The resurgence comes after Indian refiners resumed purchases following changes in U.S. sanctions policy earlier this year. Major refiners, including private-sector players, have been actively sourcing cargoes from Venezuela. 

What Indian companies are looking at 

During the visit of Venezuelan acting President Delcy Rodríguez to India, discussions focused on expanding cooperation across the energy value chain. According to India's Petroleum Ministry, Venezuelan authorities invited an Indian energy delegation to explore investment opportunities in the country's energy sector. 

The areas under consideration include: 

• Upstream oil and gas exploration and production 
• Participation in producing oil fields 
• Refining and downstream projects 
• Energy infrastructure development 
• Possible cooperation in critical minerals and mining sectors 

Petroleum Minister Hardeep Singh Puri said Indian companies are ready to deepen their presence in Venezuela and support the country's energy sector reconstruction. 

ONGC Videsh angle 

One company likely to be closely watched is ONGC Videsh, the overseas investment arm of ONGC. The company has extensive experience operating international oil and gas assets across multiple countries and has historically explored opportunities in Latin America. 

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India's interest in Venezuelan oil fields is not entirely new. ONGC Videsh already owns a 40% stake in the San Cristobal oil field and an 11% stake in the Carabobo-1 project, making it one of the few Indian companies with an existing presence in Venezuela's upstream oil sector. Any revival of production and investment flows could boost the value of these assets while helping India secure long-term crude supplies. 

What stakes do Indian firms already hold? 

India is not a newcomer to Venezuela's energy sector. Through ONGC Videsh, the overseas investment arm of ONGC, India already has investments in two major Venezuelan oil projects, giving it a foothold in the country that holds the world's largest proven crude oil reserves. 

The most significant holding is in the San Cristobal oil field, where ONGC Videsh owns a 40% stake, while Venezuela's state-owned oil company PDVSA operates the project. The company also holds an 11% stake in the Carabobo-1 heavy oil project, alongside Indian partners including Indian Oil Corporation and Oil India. 

According to estimates, ONGC Videsh's cumulative investment in Venezuela stood at about $770 million as of March 2025, with around $529 million invested in San Cristobal and $240 million in Carabobo-1. 

However, US sanctions and Venezuela's prolonged political and economic crisis have limited production and delayed dividend payments to foreign investors. ONGC Videsh has reportedly been unable to access nearly $600 million in accumulated dividends, making any easing of restrictions or revival of Venezuelan oil production particularly significant for the company. 

While no new Venezuelan acquisition has been announced yet, ONGC Videsh could emerge as a natural candidate for participation in future upstream projects if India and Venezuela move ahead with deeper energy cooperation. 

Why this partnership is strategic 

For India, investing directly in oil fields can provide long-term access to crude supplies, reduce exposure to market volatility, and strengthen energy security. 

India imports nearly 90% of its crude oil needs, making diversification a strategic priority. Recent conflicts in West Asia and concerns about shipping routes have highlighted the risks of overdependence on any one region. Venezuela offers an alternative source of crude outside the Gulf region. 

A stronger presence in Venezuelan oil fields would also give Indian companies a foothold in one of the world's richest hydrocarbon provinces at a time when Caracas is actively seeking foreign investment.