ONGC is set to take direct control of two oil blocks in Venezuela, marking a shift after years of staying cautious there due to US sanctions.

Here’s what happened. ONGC, through its overseas arm ONGC Videsh, already holds a 40% stake in Venezuela’s San Cristobal field. It also holds an 18% stake, along with other Indian firms, in the Carabobo-1 project.

Until now, the company had stayed cautious about taking an active operating role there because of US sanctions. That caution is easing.

Speaking on an analyst call after the company’s June quarter results, finance director Anupam Agarwal said ONGC now has full freedom to work on its Venezuela projects.

He added that Venezuela’s new petroleum law offers extra incentives, and that ONGC already has experience running oilfields with similar geology back home.

Agarwal said formal agreements could be signed soon, handing operatorship of some projects over from Venezuela’s state oil company, PDVSA. There’s a second piece of good news too.

ONGC regained its 20% stake in Russia’s Sakhalin-1 project in December, after being locked out for four years following Western sanctions on Russia.

That stake is already paying off. Quarterly revenue from the project has risen to around Rs 1,000 crore, up from Rs 500-600 crore earlier, Agarwal said.

Both updates came alongside a strong set of numbers. ONGC’s standalone net profit for the June quarter jumped 112% year-on-year to Rs 17,034 crore, helped by higher oil and gas prices.

Together, the Venezuela and Sakhalin-1 developments mark a broader push by ONGC to strengthen its overseas asset base and secure long-term energy supplies for India.

Unlock profitable opportunities every day! Tradz by EquityPandit provides actionable intraday trading signals for stocks and futures. Don’t miss out – download Tradz by EquityPandit and start winning now!