ONGC Videsh Ltd, the overseas arm of state-run Oil and Natural Gas Corp (OVL), is in talks with Venezuelan authorities to recover around $500 mn in dividends that have been held up since US sanctions were imposed. The company is weighing whether the payment should be made in cash or settled through crude oil supplies as part of negotiations that followed relief from the sanctions. US Office of Foreign Assets Control granted a general licence in July to OVL to resume operations in Caracas, enabling formal discussions on the outstanding receivable.

OVL holds a 40 per cent stake in the San Cristobal oil project and an 11 per cent interest in the Carabobo project, both operated in partnership with Venezuela's state oil company Petroleos de Venezuela SA. The company has been unable to receive income from those assets for several years and has around $500 mn of dividends stranded in the country. Venezuelan partner PDVSA had previously agreed in principle to supply oil to OVL instead of paying cash dividends, a mechanism now under renewed negotiation.

The two upstream assets have been underutilised for years owing to sanctions, underinvestment and payment constraints, with receivables effectively stranded and development activity limited. OVL sought a specific licence from the US Treasury in 2024 to enable wider operations and commercial receipts, and it is now engaging with Venezuelan authorities to lay out operating rules. The company has indicated that the framework for the projects should be prepared within the next three months, a timeline being discussed with local counterparts.

India's engagement with Venezuela has already expanded, with petroleum officials noting a desire to deepen the energy partnership and Indian companies expressing readiness to increase their presence. Venezuela became the third largest supplier of crude oil to India in August as shipments rose 64 per cent from July to 358,000 barrels per day, according to analytics firm Kpler. Any settlement of the stranded dividends will influence commercial ties and the pace of restoration at the projects.