In a clarification to the exchanges on Tuesday, August 18, ONGC said OVL has two assets in Venezuela, San Cristobal and Carabobo-1, and had been pursuing license authorisation from the US Office of Foreign Assets Control (OFAC) for operations in the country.
“The required go ahead was received from US Govt. in July, 2026,” the company said.
ONGC added that framework agreements for the further course of action in both assets are currently under discussion with relevant stakeholders.
The clarification came in response to a news report that said ONGC had received a US licence to resume full operations in Venezuela and was looking to take over operatorship.
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No material impact quantified
ONGC said no material movement had been noticed in its share price and that the operational or financial impact of the development could not be determined at this stage.
“As the operational or financial impact of the said event on the Company cannot be determined at this stage,” ONGC said, explaining why the development had not been disclosed to the stock exchanges earlier under Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations.
The company said no material operational or financial impact can be quantified at this stage.
Shares of the company ended near the day’s lows following the announcement on Tuesday. The stock ended nearly flat at ₹238.71. It has fallen close to 10% over the last six months, while gaining just 0.3% so far in 2026.
ONGC quarterly results
ONGC reported a stronger-than-expected June quarter, with standalone net profit more than doubling sequentially to ₹17,034 crore, compared with the CNBC-TV18 poll estimate of ₹13,787 crore.ONGC’s first quarter revenue rose 29.3% quarter-on-quarter to ₹46,461 crore, while Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) surged to ₹28,355 crore, ahead of the Street estimate of ₹27,482 crore. EBITDA margin expanded to 61% from 35.3% in the previous quarter and was above the Street estimate of 59%.
The higher share of premium-priced new well gas was a key contributor to earnings. New well gas generated ₹3,998 crore in revenue during the quarter and accounted for around 38% of revenue from ONGC’s nomination gas portfolio, delivering an additional ₹1,897 crore compared with the Administered Price Mechanism (APM) gas price.
Oil and gas production remained largely flat during the quarter. ONGC said production was affected by reservoir complexities in the KG-98/2 block, rough sea conditions in the Western Offshore, delays in pipeline replacement projects and temporary well shutdowns during the commissioning of major development projects. Lower gas offtake from certain customer facilities also weighed on production.
The company expects these pressures to ease as projects including the Daman Upside Development Project (DUDP), TSP and Discovered Small Fields (DSF) gather pace.
ONGC also spudded its first deepwater exploratory well in the Mahanadi Basin during the quarter under the government’s Samudra Manthan offshore exploration initiative.
The company said it remains optimistic about its Western Offshore portfolio and is working with bp on reservoir management, enhanced recovery and infrastructure upgrades under its ongoing ₹40,000 crore investment programme, with benefits expected to start materialising from FY28.
