India Seeks Resolution of ONGC Dues in Talks with Venezuela
India and Venezuela Strengthen Energy Cooperation and Economic Ties
India and Venezuela have made significant progress in deepening energy cooperation and expanding economic engagement across various sectors, with both countries highlighting the growing importance of their partnership.
During a special Ministry of External Affairs briefing, Secretary (East) Rudrendra Tandon emphasized that energy cooperation was a key aspect of discussions between the two countries. The talks focused on pending commercial issues, including outstanding dividend payments due to ONGC from Venezuela, which remains under active consideration. Tandon noted that the Venezuelan side is aware of the significance of resolving this matter, and payment arrangements are evolving as Venezuela undergoes an economic transition.
ONGC has stakes in two oil fields in Venezuela, including Sancristobal and Carabobo-1, with 40% and 11% stakes, respectively. However, due to US sanctions, the company has not received income for the past few years, with around $600 million of dividends stuck in the country. Despite this challenge, Tandon expressed optimism about the potential for energy cooperation between the two countries.
Venezuela possesses some of the world's largest oil reserves, while India remains a major and steadily growing consumer of crude oil. The discussions focused on building a structured energy partnership as Venezuela's energy sector undergoes significant changes. In fact, in recent spot market purchases, Venezuela has already emerged as the third-largest supplier of crude oil to India this month, reflecting the growing importance of this trade relationship.
Beyond energy, both sides explored opportunities to strengthen economic cooperation in sectors such as mining, animal husbandry, transportation, agricultural equipment, automobiles, and pharmaceuticals. Tandon described the discussions as "very businesslike and very substantive" and said the Venezuelan side viewed India as a preferred partner for the future.
Earlier in the day, Prime Minister Narendra Modi and Acting President Delcy Rodríguez held wide-ranging talks covering energy, trade, investment, healthcare, and automobiles. The two leaders also exchanged views on regional and global issues and reaffirmed their commitment to strengthening bilateral ties and advancing the interests of the Global South.
| Sector | India's Growth Rate | Venezuela's Growth Rate |
|---|---|---|
| Energy | 5% | 3% |
| Mining | 6% | 4% |
| Animal Husbandry | 7% | 5% |
| Transportation | 8% | 6% |
| Agricultural Equipment | 9% | 7% |
| Automobiles | 10% | 8% |
| Pharmaceuticals | 11% | 9% |
Read also: Concerns Raised at Parliamentary Panel Meeting Over Rupee and Sluggish Private Investment
Note: The growth rates mentioned in the table are hypothetical and for illustration purposes only. Actual growth rates may vary.
Investor Takeaway
India and Venezuela are deepening energy cooperation, but pending commercial issues, including ONGC's outstanding dividend payments, remain under consideration.
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