A potential US-led takeover or restructuring of Venezuela’s oil sector could bring significant financial relief to India by unlocking nearly USD 1 billion in long-pending dues, while also helping revive crude production from Indian-operated oilfields in the sanctions-hit Latin American nation, according to analysts and industry sources.
India was once a major processor of Venezuelan heavy crude, importing more than 400,000 barrels per day at peak levels. However, sweeping US sanctions imposed in 2020, along with rising compliance risks, forced Indian refiners to halt purchases entirely.
India’s flagship overseas oil producer, ONGC Videsh Ltd (OVL), jointly operates the San Cristobal oilfield in eastern Venezuela, holding a 40 per cent stake. Production at the field has been severely curtailed as US sanctions restricted access to critical technology, equipment, and oilfield services, leaving commercially viable reserves largely stranded.
Venezuela has failed to pay USD 536 million in dividends owed to OVL for the period up to 2014. A similar amount remains unpaid for subsequent years, as the Venezuelan government has refused to permit audits, effectively freezing settlement of India’s claims.
Industry experts said that sanctions could be eased following a dramatic US operation that removed President Nicolas Maduro and placed Venezuela’s vast oil reserves under American oversight. If restrictions are lifted, OVL could redeploy drilling rigs and equipment from other locations, including ONGC’s oilfields in Gujarat, to restart operations at San Cristobal.
Currently, output from the field has fallen sharply to just 5,000–10,000 barrels per day, far below its potential capacity. A revival of production could not only improve India’s energy security but also help recover long-blocked payments.
Analysts believe that renewed exports from Venezuela under US supervision could reshape global crude supply chains, with India emerging as one of the key beneficiaries.
