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India will buy oil from this country without paying! Know what is the deal, why would this happen?

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India will buy oil from this country without paying!

India Venezuela: Such a deal is being made between India and Venezuela, due to which this country has agreed to supply oil to India. The name of this country is Venezuela, after which immense reserves of oil are hidden. Venezuela has agreed to supply oil to Indian oil company ONGC Videsh Ltd (OVL) in exchange for a pending dividend. A senior Venezuelan official has not yet given dates for the OVL lifting. In this regard, Petroleum Secretary Pankaj Jain said that they have agreed to give us some oil in lieu of the pending dues of OVL. We are waiting for the lifting dates.

According to the information, India’s leading oil company Oil and Natural Gas Corporation (ONGC) Videsh Limited is in talks to buy oil from the South American country Venezuela in exchange for its dividend. According to reports, ONGC’s dividends worth about $600 million are stuck in Venezuela. Two people associated with the matter have said that ONGC is in talks to buy oil from Venezuela in exchange for its stuck dividend. Talks between ONGC and Venezuela regarding oil purchase have become possible after the US ended the sanctions imposed on Venezuelan oil and gas after the agreement between the Venezuelan government and opposition parties in October 2023.

There was a ban on oil and gas on Venezuela since 2019.

There was a ban on Venezuelan oil and gas since 2019. Before the sanctions, Venezuela was India’s fifth largest oil supplier. The oil deal with Venezuela is also important for India because India is the world’s largest oil buyer. India has been saying since the beginning that it will buy oil from wherever it gets cheap. In such a situation, if oil is received from Venezuela in exchange of dividend, India’s foreign exchange reserves will also increase.

Dividend worth $600 million stuck in Venezuela

In fact, India also has an investment in the San Cristobal project of Petroleos de Venezuela SA of Venezuela. In media reports, a spokesperson of ONGC Videsh Limited has also confirmed that the company is owed a dividend of about $600 million on the San Cristóbal project. He said that after the relaxation in US sanctions, the company is in talks to buy oil in exchange for dividend.

Venezuela has the largest oil reserves

Venezuela, a member of the Organization of Petroleum Exporting Countries (OPEC), has the world’s largest oil reserves. According to commodity insights website S&P, Venezuela’s current production capacity is currently 8-8.5 lakh barrels per day, while current production is about 7.5 lakh barrels per day. Before the US imposed sanctions, India used to buy about three lakh barrels of oil per day from Venezuela. As of 2019, Venezuela was the fifth largest oil supplier to India, according to official data from the Indian government.

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