ONGC Videsh Hopes to Recover Dues from Russia and Venezuela

Strategic Insights -

ONGC Videsh, India's flagship overseas firm, is optimistic about recovering its pending dues in Russia and Venezuela due to the opening of banking channels with Russia and a sanctions waiver on Venezuelan oil. The overseas investment arm of state-owned Oil and Natural Gas Corporation (ONGC) has about $350 million in dividend income stuck in Russian banks and $600 million stuck in Venezuela due to western embargo and sanctions, respectively. OVL managing director Rajarshi Gupta stated that the resolution is expected to happen soon, and the company should be able to retrieve the money.

Key Takeaways:

  • ONGC Videsh has about $350 million in dividend income stuck in Russian banks due to western embargo.
  • OVL has another $600 million stuck in Venezuela due to sanctions.
  • The company holds a 49.9% stake in the Vankorneft oil and gas field and a 29.9% stake in the TAAS-Yuryakh Neftegazodobycha fields in Russia.
  • OVL got its last dividend back in July 2022, and subsequent dividend payout is lying in the company's account in Russia.
  • The company is looking at right banking channels and discussions are on to resolve the issue.
  • OVL holds a 26% stake in Suzunskoye, Tagulskoye, and Lodochnoye fields -- collectively known as the Vankor cluster in the north-eastern part of West Siberia.
  • Indian Oil Corp (IOC), Oil India Ltd (OIL), and Bharat PetroResources Ltd (a unit of Bharat Petroleum Corp Ltd or BPCL) hold another 23.9% in Vankor.
  • OVL also has a 20% stake in the Sakhalin-1 oil and gas field in Far East Russia.

Statistics:

  • $350 million: dividend income stuck in Russian banks
  • $600 million: pending dues in Venezuela
  • 49.9%: OVL's stake in the Vankorneft oil and gas field
  • 29.9%: OVL's stake in the TAAS-Yuryakh Neftegazodobycha fields
  • $5.46 billion: total investment in buying stakes in four different assets in Russia
  • July 2022: last dividend payout received
  • 26%: OVL's stake in Suzunskoye, Tagulskoye, and Lodochnoye fields
  • 40%: OVL's stake in the San Cristobal field in eastern Venezuela
  • $2.1 billion: acquisition of Imperial Energy in 2009

Sources:

  • Global Data Point
  • SyndiGate Media Inc.