Shares of Oil and Natural Gas Corp are trading higher after Reuters reported citing industry source that India's largest oil and gas exploration company has sought a waiver from the U.S. Office of Foreign Assets Control to lift crude oil from Venezuela.
The report said ONGC is optimistic of winning an approval, according to a source who declining to be named.
Earlier this year, US had reimposed sanctions on Venezuela citing that the country had broken an accord to hold free and fair elections.
India and even American oil refiners had increased imports of Venezuelan oil in 2023 after a six-month waiver from sanctions was announced, which ended in April this year. Oil from Venezuela was among the cheapest for India's oil refiners, with average landed cost reported at $60.60 a barrel in January this year.
The Reuters report added that ONGC has been hopeful of recovering $500 million worth of dividends pending since 2014 for the stake it holds in Venezuelan projects. ONGC has instead sought oil instead of the pending dividend, however there has not been much progress on that front so far.
Crude oil has rallied this year helped by supply cuts by OPEC+, though a volatility has declined to multi-year lows in June.
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