ONGC Gets Green Signal to Resume Oil Production in Venezuela

State owned oil and natural gas exploration company ONGC has received a green signal to resume oil and gas production in Venezuela. Senior ONGC officials said the US Office of Foreign Assets Control (OFAC), under the US Treasury Department, has approved the move. US sanctions had previously restricted ONGC from operating its Venezuelan oil and gas assets at full capacity.

ONGC Videsh, a subsidiary of ONGC, holds a 40% stake in the San Cristobal oil field in partnership with Venezuela’s state owned PDVSA. It also owns an 11% stake in the Carabobo project. The latest US approval will allow ONGC to increase production from both assets and explore investment opportunities in new fields. The move could also open the door for more Indian companies to invest in Venezuela’s oil and gas sector.

Meanwhile, crude oil prices could rise further, according to brokerage firm Mirae Asset Sharekhan. It estimated that Brent crude could reach $100 per barrel by September 15 if tensions between the US and Iran do not ease soon. Brent crude is currently trading at around $90 per barrel.