As the sanctions on Venezuela lessen, ONGC expects to recoup more than $500 million in dividends

26 Oct 2023 , 02:37 PM

With the easing of sanctions against Venezuela, Oil and Natural Gas Corp. intends to recoup about $500 million in dividends that have been outstanding since 2014 for its investment in Venezuelan enterprises, news reports said on Thursday.

In the most significant reversal of Trump-era sanctions against Caracas, the Biden administration on Wednesday loosened sanctions on the oil industry in Venezuela following an agreement between the opposition and the government for the 2024 election.

U.S. sanctions had a negative impact on Venezuela’s economy and oil production, which helped foreign corporations like ONGC accumulate dividends.

ONGC has 40% of the San Cristobal field in the Orinoco Heavy Oil belt of eastern Venezuela through its foreign investment, ONGC Videsh, and 11% of the Carabobo area-1.

According to the reports, ONGC wants to sell its portion of the oil from the Venezuelan field to the highest bidder. The reports also stated that the prospect of a dividend recovery has increased with the relaxation of sanctions.

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