US-Led Oil Restructure Paves Path for India’s Venezuelan Dues Recovery

A potential US-led restructuring of Venezuela's oil sector may benefit India by unlocking over USD 1 billion in dues and reviving crude production. Sanctions easing could allow India's ONGC Videsh Ltd to enhance output from fields in Venezuela. This could restore India's import levels and diversify fuel sources.

A potential US-led restructuring of Venezuela's oil sector could significantly benefit India, particularly by unlocking long-pending dues nearing USD 1 billion. The move may also accelerate the revival of crude production from fields operated by India's flagship overseas producer, ONGC Videsh Ltd, in the sanctions-hit Latin American nation.

In recent years, India's import of Venezuelan heavy crude was halted due to strict US sanctions and escalating compliance risks. However, a shift with US-led sanctions easing could see firms like ONGC mobilizing equipment and technology, thereby rejuvenating output levels that have sharply declined.

Analysts suggest that a US-controlled Venezuelan oil sector would expedite oil exports globally, with India poised as a key buyer. Additionally, renewed Venezuelan crude exports are expected to offer India a strategic alternative to Middle Eastern oil, effectively reducing exposure to geopolitical volatilities and enhancing negotiation leverage.