State-run Oil and Natural Gas Corporation (ONGC) may be poised to recover around US $500 million in long-pending unpaid dividends from its Venezuelan oil investments if US sanctions on Venezuelan oil are eased or lifted as part of a potential restructuring of the South American nation’s oil sector.
ONGC’s overseas arm ONGC Videsh Ltd has stakes in Venezuelan oil assets such as the San Cristobal field, where decades of sanctions have effectively blocked repatriation of profit share to foreign investors like ONGC. As a result, substantial dividend dues have remained on ONGC’s books for years. If the United States or an international restructuring succeeds in easing those sanctions, ONGC could finally unlock and repatriate these withheld funds, delivering a meaningful boost to its cash flows and balance sheet.
According to global brokerage Jefferies, the recovery of these unpaid amounts would enhance investor sentiment and could support a potential re-rating of the company’s valuation, particularly as ONGC’s shares currently trade below its book value. The unpaid dividend recovery could come on top of ONGC’s existing strong cash generation from domestic operations.
Beyond dividend dues from San Cristobal, analysts also highlight that ONGC holds an 11 % equity stake in the Carabobo field in Venezuela’s Orinoco Belt, which has seen limited development under sanctions. Should US-led restructuring lead to operational improvements in Venezuelan oil production, ONGC’s ability to develop this field could add further long-term value.
The prospect of recovering these dues has already put oil-linked stocks including ONGC and Reliance Industries in focus on Indian markets, with investor attention heightened amid evolving geopolitical developments in Venezuela.
