India's state-owned Oil and Natural Gas Corp. is negotiating to take over operations at two Venezuelan oil projects within six months — with the Biden administration's involvement — handing a foreign government-controlled company control over production and sales of Venezuelan crude.
ONGC's overseas arm, ONGC Videsh, is in advanced discussions with both Venezuelan and U.S. authorities, finance chief Anupam Agarwal told analysts Friday. The company expects agreements finalized within three to six months. ONGC is owed more than $500 million in dividends from the fields and wants to shift from passive investor to operator — running the wells and marketing the oil.
At San Cristobal, ONGC holds 40% alongside Venezuela's state oil company PDVSA, which owns the remaining 60%. ONGC expects full operatorship there. At Carabobo 1, the arrangement would be shared with other investors: ONGC and other Indian companies hold a combined 18%, while Spain's Repsol holds 11%. Agarwal said the agreements could also allow ONGC to acquire interests in additional Venezuelan fields.
Both OilPrice and Reuters reported the talks as straightforward business transactions. Neither raised the question that matters to working Americans: why is the Biden administration facilitating foreign state oil companies' expansion into the Western Hemisphere's largest oil reserves while keeping American energy producers on a short leash at home?
This isn't a one-off. Chevron has outlined more than $7 billion in Venezuelan investment over five years. Eni and Repsol have already secured expanded operating roles. Foreign companies are lining up to rebuild Venezuela's oil industry — and Washington is holding the door open.
Rystad Energy estimates Venezuela could produce 1.6 million barrels per day by 2028 and 1.8 million bpd by 2030, provided investment and oilfield services expand substantially. But the country had just two active drilling rigs as of August, according to Baker Hughes data cited by Rystad. Roughly 50 would be needed by 2028 to support that forecast.
The dividend settlement details haven't been finalized, according to OilPrice. But the broader picture is already clear: India's government is moving to lock down Venezuelan crude to feed its own economy, and the Biden administration is helping clear the path.
Every barrel that ONGC, Chevron, or Repsol pumps from Venezuelan soil is a barrel that shapes global supply — and the price at the American pump. The question is why Washington seems more comfortable with foreign state oil companies controlling that supply than with American drillers producing it here at home.
