India’s Oil and Natural Gas Corporation (ONGC) is actively pursuing discussions to resume its operations in Libya while also eyeing an expansion of production activities in Venezuela, a company executive revealed on Friday.
Sushma Rawat, the director of exploration at ONGC, disclosed the company’s intentions during the India Energy Week event in Goa. Rawat stated that ONGC is engaged in negotiations with the National Oil Corporation of Libya to revive its operations in the North African nation, following in the footsteps of Oil India, which is also in talks to restart drilling activities in Libya after a 13-year hiatus due to political instability.
Both ONGC and Oil India withdrew their staff from Libya in 2011 amidst tumultuous political conditions. Now, with potential opportunities emerging, discussions are underway to re-enter the Libyan market and bolster production efforts.
Additionally, ONGC is exploring avenues to increase its production capabilities in Venezuela, as Rawat informed reporters. This revelation comes amidst recent reports indicating that Oil India is engaged in similar discussions with operators to enhance oil production in the South American country.
The decision to expand operations in Venezuela comes on the heels of the United States granting sanctions relief for the OPEC member nation in October last year, following an agreement for elections scheduled for this year. However, recent developments have seen the reinstatement of sanctions on Venezuela by the U.S. government on January 29, adding a layer of complexity to ONGC’s plans in the region.
Rawat also shed light on ONGC’s domestic endeavors, mentioning plans to commence drilling activities in the Andaman Islands by the end of the year. Additionally, exploration efforts in the Cauvery Delta region of South India are slated to begin either by the end of this month or in March.
Amidst these ambitious plans, Rawat emphasized the importance of tax rebates and cost benefits for ONGC, particularly when venturing into challenging and remote regions for exploration activities.
As ONGC navigates these strategic initiatives both domestically and internationally, the company seeks to capitalize on emerging opportunities while addressing the inherent challenges associated with exploration and production in diverse geographical landscapes.