State-owned Oil and Natural Gas Corporation (ONGC) expects to make progress towards acquiring operatorship rights in two Venezuelan oil projects over the next three to six months. The company's overseas arm, ONGC Videsh, is in advanced discussions concerning the San Cristobal and Carabobo projects, according to ONGC Director (Finance) Anupam Agarwal.
Speaking during a post-results interaction with analysts on November 6, 2026, Agarwal indicated that the arrangement could be finalised within the expected timeframe. The proposed move would give ONGC Videsh a greater operational role in projects in which it already holds equity interests.
The development is significant for India's overseas energy investment strategy, as the company seeks to strengthen its involvement in international oil production assets.
ONGC Videsh's Existing Stakes in Venezuela
ONGC Videsh, the international operations arm of ONGC, already has investments in two Venezuelan oil projects.
Its reported interests include:
San Cristobal project: ONGC Videsh holds a 40% stake.
Carabobo project: The company holds an 11% stake.
In the San Cristobal project, the remaining interest belongs to Venezuela's state-owned oil company, Petróleos de Venezuela S.A. (PDVSA).
These existing equity holdings provide ONGC Videsh with a financial interest in the projects. However, an ownership stake and operatorship are different arrangements. An equity participant holds a share in the project, while the operator is responsible for managing its day-to-day operational activities under the applicable agreements and regulatory framework.
Securing operatorship rights could therefore expand ONGC Videsh's role beyond its existing investment position.
What Operatorship Rights Could Mean for ONGC
Operatorship generally involves responsibility for coordinating and managing activities such as production planning, field development, technical operations and project execution.
If the proposed arrangement is completed, ONGC Videsh could gain greater involvement in decisions concerning the operation of the Venezuelan assets.
The potential benefits would depend on the final agreement, including the scope of responsibilities, financial commitments, production arrangements and regulatory approvals.
For an international energy company, operatorship can provide greater operational oversight of an investment. It can also increase responsibilities relating to technical management, project costs, production performance and compliance with local requirements.
However, the precise terms of the proposed arrangement have not been disclosed in the supplied report.
San Cristobal and Carabobo Projects Under Discussion
The San Cristobal project is one of ONGC Videsh's established investments in Venezuela. Its 40% interest means the company already has a substantial equity position, while PDVSA holds the remaining share.
The Carabobo project represents another part of the company's Venezuelan portfolio, with ONGC Videsh holding an 11% stake.
The discussions concerning operatorship rights cover both projects, according to Agarwal's remarks. The company expects the process to move towards finalisation over the next three to six months.
The report, however, does not specify whether both projects will receive identical operating arrangements or whether separate agreements will be required.
Implications for India's Overseas Energy Interests
India has an interest in maintaining access to diverse international energy sources. Overseas oil investments can provide Indian companies with exposure to crude production outside the domestic market and opportunities to participate in international energy projects.
A greater operational role in Venezuela could potentially strengthen ONGC Videsh's position in the country's oil sector. It may also increase the company's responsibility for managing production-related activities and coordinating with its local project partners.
The commercial outcome will depend on the final operatorship terms, the condition and development requirements of the assets, and the regulatory and operational environment in which they function.
For companies involved in international energy investments, changes in project ownership, operating responsibilities and cross-border arrangements can require careful financial and contractual assessment. Shunyatax's strategic advisory services can help businesses understand the importance of evaluating investment structures, commercial risks and international business arrangements.
Finalisation Expected Within Three to Six Months
ONGC's latest statement indicates that discussions over operatorship rights have reached an advanced stage. The company expects the arrangement to be finalised within three to six months, although the supplied report does not provide a specific completion date.
The next steps will depend on the outcome of negotiations and the relevant approvals and agreements. Until the arrangements are formally concluded, ONGC Videsh's existing equity interests should be distinguished from any future operational control it may acquire.