New Delhi’s diplomatic circles are buzzing with discussions on how U.S. sanctions against Venezuela could reshape global oil dynamics, particularly for energy-hungry India. Former Foreign Secretary Harsh Vardhan Shringla recently shed light on the stakes, emphasizing India’s substantial investments and the potential pathways forward.
India had poured nearly $6 billion into Venezuela’s oil sector, with crude imports flowing steadily until American restrictions slammed the door shut. Companies like ONGC, through its overseas arm OVL, hold significant stakes—40% in the San Cristobal project and 11% in Carabobo 1 alongside partners like Indian Oil and Oil India. Shringla highlighted the urgency: ‘Venezuela boasts the world’s largest oil reserves, surpassing even Saudi Arabia. Rebuilding that connection is critical.’
The ex-diplomat underscored the need for strategic patience. ‘We must explore options for our companies and interests while awaiting the right conditions,’ he said. Brokerage reports from Jefferies add optimism, suggesting a potential regime change could unlock $500 million in stuck dividends for ONGC from pre-2014 production in San Cristobal, where output halted afterward.
As U.S. influence tightens over Venezuelan oil, export bans might ease, flooding markets and pressuring crude prices downward. President Trump has vowed to maintain restrictions, but any thaw could benefit Indian firms. Shringla’s insights remind us that in the chess game of global energy, India’s moves in Venezuela could yield long-term dividends—or costly setbacks. The watch is on for diplomatic shifts that might reopen these vital trade lines.