BT Exclusive: ONGC Videsh to restart operations in Venezuela's San Cristobal oilfield soon

ONGC Videsh Ltd (OVL) is nearing takeover of operatorship of Venezuela's San Cristobal oilfield after agreeing production and investment plans with Venezuelan authorities, a source familiar with the developments told Business Today, as the company awaits a final gazette notification from the Venezuelan government.

"The production, revival, investment in capital expenditure (CAPEX) and operating expenditure (OPEX) for the San Cristobal field have been discussed at length and mutually agreed with the Venezuelan side," the source told Business Today.

The notification is expected to formalise arrangements that have been under discussion for months. According to the source, operatorship transfer and field revival activities could begin within 90-120 days of the notification being issued, marking a key step to revive one of OVL's most significant overseas assets.

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The transition could also help address more than $500 million in pending dividends and dues linked to OVL's Venezuelan assets, which have remained inaccessible because of sanctions-related restrictions and operational disruptions over the years.

"The evolving framework could improve financial visibility and help unlock value from assets that have been constrained for more than a decade," according to the source.

The development is part of an ongoing transition under Venezuela's revised hydrocarbons framework. The discussions have already progressed beyond broad participation of OVL as the designated operator and into operational transition. Technical deliberations with Venezuelan counterparts have been completed to achieve technical convergence on the revival plan, according to a source who did not wish to be named.

"Discussions over production commitments and operational parameters have been underway for the past months," the official added.

The transition is taking place under Venezuela's revised Hydrocarbons Law, or Ley Orgánica de Hidrocarburos (LOH), which seeks to restructure the country's oil sector and create a new operating framework for existing projects.

OVL and Venezuelan authorities have held multiple rounds of discussions as part of the migration of the San Cristobal joint venture into the new framework.

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The transition is also being aided by an easing of sanctions-related constraints. According to the source, OVL has secured a specific licence from the US Treasury's Office of Foreign Assets Control (OFAC), allowing it to resume full operations in Venezuela after years of facing constraints because of sanctions-related risks.

The source said the combination of regulatory changes in Venezuela and sanctions-related relaxations has improved the outlook for future operations and could help resolve long-standing commercial issues associated with the company's Venezuelan assets.

San Cristobal is one of OVL's key assets in Venezuela, where the Indian company holds a 40% stake, while Petróleos de Venezuela, S.A. (PDVSA) owns the remaining 60%. Under the new hydrocarbon law enacted in January 2026, the Indian company can seek to enhance its stake from 40% to 49%, subject to approvals from the Venezuelan government.

Under the LOH framework, existing joint venture arrangements are being migrated to a new operating structure. The transition could redefine operational, production, crude offtake and investment responsibilities within the venture and pave the way for OVL to assume operatorship.

"This particular field was producing around 30,000 barrels in 2014 and, due to years of under-investment and sanctions-related constraints, production has gradually reduced and presently averages around 5,000 to 6,000 barrels of oil per day (bpd)," the source said.

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Sources further added that infrastructure constraints, conditions of flowing and non-flowing wells, reservoir behaviour and the pace of investment in the field would ultimately determine how quickly production can be ramped up. Additional spending may be required on reservoir-pressure maintenance systems, water-handling facilities, power generation, and other supporting infrastructure as output rises.

For now, the focus remains on completing the legal transition process and preparing for the next phase of operations at San Cristobal.

When concluded, the transition would place OVL at the centre of efforts to revive production at an onshore field lying in one of the world's most prolific hydrocarbon basins that once produced around 30,000 bpd and would mark one of the most significant developments in the company's Venezuelan operations in recent years.