State-run ONGC is set to sign agreements to take over operatorship of two Venezuelan oil projects, reopening a key overseas growth avenue after sanctions had constrained operations, even as the restoration of its stake in Russia’s Sakhalin-1 has lifted ONGC Videsh’s profit from Rs 500-600 crore annually to more than Rs 1,000 crore a quarter.

ONGC Videsh holds a 40% stake in the San Cristobal field and, along with other Indian firms, an 18% interest in the Carabobo-1 project. The assets are currently operated by Venezuelan state oil firm PDVSA. ONGC expects agreements under Venezuela’s new petroleum law to pave the way for transfer of operatorship.

The company has recently secured a licence from the US Office of Foreign Assets Control and is engaging with Venezuelan authorities along with its joint-venture partners. The new petroleum law offers additional fiscal incentives for hydrocarbon development.

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“Now we have full freedom to work on the Venezuela project,” ONGC Director-Finance Anupam Agarwal told analysts, adding that sanctions-related risks which had earlier restricted the company’s operations were now behind it.

The shallow onshore projects have geological characteristics similar to ONGC-operated assets around Mehsana and Ahmedabad, giving the company relevant technical expertise. Agarwal said ONGC was “very upbeat” and expected new agreements and transfer of operatorship from PDVSA shortly.

The Venezuela push comes as ONGC Videsh stages a sharp financial recovery following the restoration of its 20% stake in Sakhalin-1 in December 2025, four years after Russia transferred the project to a new domestic operator. ONGC began recognising the asset in its profit and loss account from January 2026.

“With Sakhalin back in our portfolio, OVL is back in the robust profit scenario,” Agarwal said. The overseas arm earned more than Rs 1,000 crore in each of the past two quarters, compared with Rs 500-600 crore annually earlier, driven mainly by Sakhalin and supported by higher oil prices.

Sakhalin’s quarterly revenue contribution has doubled to nearly Rs 1,000 crore, from Rs 500-600 crore earlier. However, ONGC said realisations from Russian assets remained constrained by geopolitical conditions and price-cap concerns.