New Delhi: The return of US sanctions to Venezuela after a six-month breather has thrown India’s oil-for-dividends plan with the Latin American nation into disarray, sending ONGC Videsh Ltd scrambling for brand spanking new choices to get the promised oil cargoes.
The six-month sanctions waiver ended on Friday with no progress on the oil-for-dividends plan agreed between the 2 international locations. US officers have now indicated that the sanctions will return.
OVL is taking a look at viable choices to safe the crude oil, and its authorized and advertising and marketing groups have been put into actionforthesame, an individual conscious of the matter stated.
“It will take time for Venezuela to ship oil. The manufacturing capability of the nation has additionally declined over time of sanction which must be rejuvenated. The chance of one other sanction raises concern whether or not these cargoes would truly get delivered,” the individual stated on situation of anonymity.
Venezuela’s state-run power monopoly PdVSA owes about $600 million in dividends to OVL, which owns 49% stake within the operational San Cristobal venture, and 11% in Carabobo, which is beneath growth.
In January, Mint had reported that OVL is in talks with its Venezuelan associate PdVSA to safe oil cargoes for settling the lengthy pending dues to the ONGC arm.
In response to a question, an OVL spokesperson stated: “Our authorized and advertising and marketing groups are engaged on the problem,” including the corporate would revert after a transparent image emerges.
Queries despatched to the Union ministry of petroleum and pure fuel and Petroleos de Venezuela S.A. (PdVSA) remained unanswered until press time.
The US, which had briefly lifted sanctions on Venezuela’s oil sector in October, is planning to revive them over Venezuelan president Nicolas Maduro’s failure to carry free and honest elections.
The return of sanctions may additionally impression OVL’s plans to get operatorship of the 2 Venezuelan initiatives. OVL managing director Rajarshi Gupta had stated in February that the corporate would have a look at investing extra within the nation to extend productiveness.
“The lifting of the sanctions is a really constructive signal. We’re in very superior discussions with the federal government of Venezuela to get additional cargoes to liquidate our dividends and on the similar time to get the operatorship of the 2 initiatives that we now have there and enhance the manufacturing from there. The 2 initiatives we must make investments to get extra manufacturing. That’s nonetheless being labored out. We must make investments, as a result of Venezuela has the most important reserves on this planet. So, if we make investments extra, we are going to get extra manufacturing,” he had stated.
Presently, OVL and PdVSA collectively function the initiatives. OVL acquired 40% in San Cristobal venture in Venezuela in 2008, with PdVSA proudly owning the steadiness 60%. ONGC Videsh holds the stake by means of ONGC Nile Ganga (San Cristobal) BV, an entirely owned subsidiary of ONGC Nile Ganga B.V.
