OVL works on oil-for-dividend deal with Venezuela

ONGC Videsh Ltd (OVL) is in talks with its Venezuelan partner to secure oil cargoes in lieu of unpaid dividends totalling $600 million, two people aware of the development said.

- Utpal Bhaskar

This follows the US easing sanctions on Venezuela, where India's overseas explorer has partnered state-owned Petróleos de Venezuela SA (PdVSA) for the San Cristobal project.

Any oil flowing in from Venezuela holds significance for India, the world's third largest oil buyer that once counted the Latin American country among its largest oil suppliers.

A spokesperson for OVL confirmed in response to a query that the San Cristobal project owes dividends of around $600 million to the company. "Post easing of US sanctions, OVL is in continuous dialogue with PdVSA for recovery of accrued dividend by various mechanisms including allocation of crude cargoes in lieu of accrued dividend," the spokesperson said.