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ONGC Shares Surge on US OFAC Licence for Venezuela Operations

By ThePip DeskONGC Shares Surge on US OFAC Licence for Venezuela Operations

ONGC shares climbed after receiving a US OFAC licence, enabling full resumption of Venezuelan operations. This approval boosts investments and production outlook.

Oil & Natural Gas Corporation (ONGC) shares increased today, closing up 0.82% at Rs. 240.45, following the company’s announcement of securing a licence from the US Treasury’s Office of Foreign Assets Control (OFAC).

This critical approval enables ONGC to fully resume its operations in Venezuela, clearing a significant obstacle for its long-standing investments in the region.

Market Performance at Close

  • ONGC traded at Rs. 240.45, up 1.95 points from its previous close.
  • The scrip opened at Rs. 239.50.
  • Intraday high: Rs. 241.30; Intraday low: Rs. 239.10.
  • A total of 86663 shares were traded on the counter.

Key Financial Metrics

  • Previous close: Rs. 238.50.
  • 52-week high: Rs. 307.50 (29-Apr-2026); 52-week low: Rs. 227.60 (30-Jun-2026).
  • Current market capitalization: Rs. 302052.50 crore.
  • Promoter holding stands at 58.89%.

Institutions hold 37.62% of the company, while non-institutions account for 3.50% of the total ownership.

Venezuelan Operations Reinstated

The OFAC licence specifically allows ONGC to ramp up activities that were previously restricted due to sanctions. This development could substantially increase the company’s production capacity and facilitate new contractual agreements within Venezuela.

ONGC is also positioned to potentially assume direct operational control of certain projects currently managed by Venezuela’s state-owned oil company, Petroleos de Venezuela S.A. (PDVSA).

  • The company is in discussions with Venezuelan authorities and joint-venture partners.
  • Focus areas include the San Cristobal and Carabobo projects.
  • ONGC Videsh holds a 40% interest in the San Cristobal oil project.
  • ONGC maintains an 11% stake in the developing Carabobo project.

As India’s largest government-run corporation, ONGC produces over half of the nation’s crude oil and natural gas, marking it as a critical public sector commercial entity.

The successful re-establishment of full operational capabilities in Venezuela through this US approval signifies a crucial strategic advancement for ONGC, potentially unlocking substantial future growth and production opportunities.

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